Funds to counter global tensions
THE appearance of US President Joe Biden at the G7 table marked a radical departure from the obstinate stance of his predecessor – and may usher in a new era for global economic co-operation.
Andrew Bell, at investment trust Witan, says that we should now expect to see the US reengaging with a ‘ multi- lateral approach to problem solving’ after the ‘megaphone diplomacy’ of recent years.
‘The world faces problems that stretch across borders, as well as a growth in authoritarianism,’ he says. ‘Realism, engagement and politeness are ingredients in helping to craft solutions and keep the peace.’
But this doesn’t mean an end to global tension, which could destabilise the future value of financial assets – tension caused either by an aggressive China reconfirming its intent to control the South China Sea, or Russia prodding away on Europe’s eastern border and testing Ukraine’s patience.
For those considering protecting their assets from any such destabilisation in the future, Chelsea’s Darius McDermott suggests that they look at investing part of their portfolio in targeted absolute return funds. These aim to deliver positive investment returns in all kinds of markets.
The best of these funds, says McDermott, include BlackRock UK Absolute Alpha, Church House Tenax Absolute Return Strategies and Janus Henderson Absolute Return.