Asset Classes

We select funds from a wider range of asset classes than are generally available in the market. Because these assets all behave differently at different times, we are able to provide very balanced, diversified and robust investment packages.

You can find out more about the asset classes to which we offer access below

 

Equity Funds

Equity funds invest in company shares. They can produce returns in two ways - through dividends which most companies pay out to shareholders each year, and through capital growth where the markets think the value of a company has gone up and therefore places a higher value on its shares. Equities have traditionally produced good long term growth, however, in the short term the value of shares can rise and fall quite dramatically. Equity funds can be general funds which will spread their investment across a wide range of shares in many different industrial sectors and economic regions. Other equity funds will be more concentrated and specialise in particular sectors or regions.

 

Commercial Property Funds

As an asset class commercial property has shown its ability to produce strong long-term growth. It has traditionally been a good hedge against inflation and less volatile than other growth assets.

But the key to property investment is diversification. By investing in a property fund you achieve a far greater degree of diversification than you could by investing directly and are also relieved of the day to day property maintenance and management duties. The other issue to bear in mind with property is liquidity. That is the ability to access your capital. It can be difficult to release capital when investing directly in property as it can take quite some time to sell a property asset at an acceptable price. Investing through a property fund increases liquidity somewhat although property funds do reserve the right to delay withdrawals by up to 6 months to facilitate the sale of assets.

 

Absolute Return Funds

An Absolute Return Strategy uses investment techniques which have the potential to make money in both rising and falling markets. In an absolute return fund, a fund manager can invest in equities on either a "long" or "short" basis. By using a combination of both, the aim is to earn profits regardless as to the general direction the markets are moving. Absolute Return strategies are becoming an important tool in acheiving investment diversification, and should be considered as a component of a balanced investment portfolio.

 

Cash Funds

Cash funds are usually used to keep liquidity in a portfolio, or as a temporary position whilst timing a re-entry into the markets. They typically hold short dated deposits with one or more institution.

 

Fixed Interest / Bond Funds

Bonds are loans to Government or corporate bodies. Investors in these bonds are entitled to a fixed income (called a "coupon") up to a maturity date. They also get their original capital back at maturity. Bonds can also be bought and sold prior to maturity. The value of a bond on the open market will change depending on how attractive its coupon is against the coupons available on new bonds. Bond funds are likely to show lower growth potential than equity funds but are considerably less volatile. They are generally use to reduce the overall risk in a portfolio