190. Value tilts, inflation proofing and the private equity opportunity

TB Wise Multi-Asset Growth fund manager Vincent Ropers talks us through the recent tilt towards value strategies in his portfolio amid hopes of a continued cyclical recovery. He also runs through his exposure to mining & natural resources, as well as infrastructure, and how these asset classes can help offer inflation-linked returns in these uncertain times. Vincent also discusses the attractive discounts available when accessing private equity companies in the investment trust market; and the importance of having a flexible mandate.

The TB Wise Multi-Asset Growth fund has an unconstrained approach which allows the team to invest in around 30-60 underlying funds and investment trusts, with a preference for out-of-favour areas. This approach has allowed them to tap into the likes of infrastructure and private equity to produce strong, long-term returns for investors. Although the team adopt a very slight value bias, the fund is not exclusively value in nature.

What’s covered in this episode:

  • The importance of flexibility to the fund
  • The use of investment trusts and the adoption of alternatives
  • Tilting the fund towards value strategies to take advantage of the ongoing cyclical recovery
  • Why mining and resources were attractive as an asset class prior to the threat of inflation
  • Tapping into infrastructure and floating rate notes to offer inflation-linked returns
  • How value strategies offer a significant margin of safety as an investment
  • The benefits of accessing private equity through an investment trust

 

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