In an ever more uncertain world, investments which are designed to provide steady capital appreciation make sense.
Prepare for the unexpected
In the midst of a seven-year ‘bull’ market, it is easy to forget the lessons of 2008 when numerous equity funds lost a large slice of their value – even if their manager outperformed the market or peer group.
Focus on what matters most
With bond yields so low and assets more highly correlated than before the financial crisis of 2008, thanks to the actions of central banks, diversifying your investments may not offer as much downside protection as you imagine. What looks like a well-balanced portfolio may actually be quite risky. The result could be losses if assets sell off simultaneously. The answer could be to invest in a truly diversified portfolio that is designed to grow capital regardless of the investment climate, and one that doesn’t worry about benchmarks or the performance of peer funds.
Vigorous growth still proving elusive
Developed economies have struggled to return to vigorous economic growth in recent years despite unprecedented loosening of monetary policy. With the Chinese economy suddenly looking more vulnerable and US interest rates rising, the economic outlook has begun to look more uncertain. Against this backdrop, it may be sensible to invest in a strategy that is designed to deliver steady capital growth regardless of the investment climate.
Past performance is no guarantee of future results. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.