A fund for all seasons
In lieu of recent and upcoming economic events, it’s important to focus on choosing a good manager with a solid track record, and give them the time and space to deliver the returns.
recent conversations with clients and prospective clients have been dominated by the issue of the prospective credit downgrade. Now that the June announcement is behind us, and the downgrade has not happened as expected, the attention has turned to the possibility of a Brexit. After that I expect the local elections to feature in conversations before the possibility of a downgrade in December is back on the agenda.
The issue is not that we have these events dominating conversations from time to time, but rather that clients expect us to make changes to the investment strategy based on what they think the outcome will be. Many betted on the currency weakening sharply post a June downgrade, and expected that the offshore exposure in their portfolio would be increased before that. Instead the downgrade was avoided and the currency has been strengthening ever since.
A more prudent approach to investing requires a longer term perspective, and suitable diversification of the portfolio. It is for this reason that we continue to shine the light on multi-asset funds such as stable, balanced and flexible funds. These funds are able to allocate money across a number of asset classes (equities, cash, bonds, property, offshore, etc.) within certain restrictions and risk parameters. The important decision for investors is choosing a manager with an established track record of managing multi-asset mandates, at a fair price, and with the right attitudes towards risk. A fund that we have recently added to our shopping list that meets these criteria is the Rezco Value Trend fund (RVT).
The RVT fund is a balanced fund, meaning that it