The Rathbone Strategic Growth Portfolio focuses not only on returns, but also on risk and correlation. Manager David Coombs uses a disciplined asset-allocation framework and a forward-looking assessment of correlation, risk and return, as the cornerstone of the investment process. Asset classes are then divided into three distinct categories – liquidity (those that can be bought and sold easily), equity risk and diversified.
What’s covered in this episode:
- We’ve been in the recessionary camp for 12 months – it’s been lonely
- Inflation probably falls to 3-4 per cent in the next 12-18 months.
- Why we will have a deeper recession in the UK and Europe
- “Testing our resolve” – adding to tech names as their prices kept falling in the first half of the year
- Buying US, Canadian and Australian 10-year bonds to mitigate recessionary risks and using their cash allocation
- How a big dislocation in markets has allowed them to find lots of mis-priced investment opportunities – many of which are uncorrelated to markets.
- Preferring commodities over property and infrastructure
- Why this crisis is no different to any other he has seen in the past four decades
- Taking emotion out of investing and adding risk to the portfolio throughout 2022
- It’s not about growth or value – it’s about investing in businesses that grow
- Why investors should switch off the noise and not panic into making short-term decisions.
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.