In a volatile world, holding a spread of assets makes a lot of sense. But relying just on the 'traditional' spread - equities, property and bonds - is unlikely to be the answer. It certainly wouldn't have done much to help investors protect their money in 2007.
Our two new funds are based on a real multi-asset approach, coupled with fixed interest and cash holdings to lessen the risk. The Cautious Managed Fund will hold around 40% in fixed interest and cash, while the Balanced Managed Fund will hold around 15%. Investment of the remainder of each Fund will be based on our unique proprietary multi-manager process.
"We invest across a wide range of assets. We pursue absolute returns. It's in our mindset. We hate losing investor's money." - Donald Robertson, Lead Fund Manager
The fund managers have been using the same process for over 17 years for the SVM Global Fund plc and, more recently, the SVM Global Opportunities Fund. Whether markets are rising or falling, we have had an enviable performance record*.
A quick look at the scatter-graph below will provide the evidence. (We're the red dot!)
We've back-tested our new Balanced Managed and Cautious Managed Funds, and both of them hold very similar performance positions relative to their peer groups. It seems clear that the approach is working.
Standard & Poor's were sufficiently impressed to award both new funds an A rating from launch.
*Source: Lipper Hindsight, SVM Global Fund 769% v 392.7% (sector average), and SVM Global Opportunities Fund 14.8% v 2.8% (sector average) since launch to 31/03/08.
SVM Global Opportunities Fund is a diversified portfolio of interesting
specialist funds designed to provide long-term growth. The investments held
within the Fund are carefully selected to be less correlated to major equity
markets. The Fund consists of a blend of single country funds giving exposure to
the fastest growing global economies, hedge funds which have an absolute return
focus, private equity funds which have traditionally provided returns only
loosely related to stockmarket movements and other specialist funds. The Fund is
managed by Colin McLean and Donald Robertson who have managed the highly
successful SVM Global Fund plc Investment Trust since launch in 1991.
SVM Balanced Managed Fund is a diversified portfolio of interesting
specialist funds designed to provide long-term growth. The Fund will hold
around 15% fixed interest and cash. The Fund will be in the IMA Balanced
Managed sector and will be invested in areas that do not move in line with
the major equity markets. The Fund will consist of a highly diversified
portfolio of international equity funds including developing markets, that
in the managers' views will deliver the best returns over the next 5-10
years. The remainder of the Fund will focus on more defensive asset classes
such as fixed interest, property and absolute return vehicles. The Fund is
managed by Donald Robertson and Colin McLean who have managed the highly
successful SVM Global Fund plc Investment Trust since launch in 1991.
SVM Cautious Managed Fund is a diversified portfolio of interesting
specialist funds designed to provide long-term growth. The Fund will hold
around 40% fixed interest and cash and will therefore the least volatile of
the SVM Fund of Funds range. The Fund will be managed relatively defensively,
and will be invested in areas that do not move in line with the stockmarket.
Such as fixed interest, property and absolute return vehicles. The growth
portion element of the Fund is focused on a highly diversified portfolio of
international equity funds, that in the managers' views will deliver the best
returns over the next 5-10 years. The Fund is managed by Donald Robertson and
Colin McLean who have managed the highly successful SVM Global Fund plc
Investment Trust since launch in 1991.