As well as seeking to protect the downside, the managers' active investment approach enables them to participate in upside capture when markets allow. This has resulted in an attractive positive 'skew' - better upside capture than downside capture - since inception.*
In these short videos, Jason Borbora explains three aspects of the managers’ active approach that have helped the Fund successfully navigate challenging market conditions to deliver the outcomes it seeks.
Launched in September 2012*, with a focus on capturing returns while minimising drawdowns, the Fund has a track record of protecting the downside and minimising losses during episodes of market volatility.
Protecting the downside during volatility
Source: Morningstar, 31 December 2018. Performance for I Acc share class, net of fees (NAV based, including ongoing charges), gross income reinvested (net of UK basic rate tax pre 5 April 2016), in GBP. Calendar year % returns for the Fund, IA Targeted Absolute Return Sector Average and FTSE All Share respectively 2018: 0.41, -2.91, -9.47; 2017: 4.82, 3.75, 13.10; 2016: 5.92, 2.09, 16.75; 2015: 1.97, 2.35, 0.98; 2014: 5.32, 3.41, 1.18.
The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth.
Past performance is not a reliable indicator of future results. If any currency differs from the investor's home currency, returns may increase or decrease as a result of currency fluctuations.
Investment objectives and performance targets are subject to change and may not necessarily be achieved, losses may be made.
Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income.
Default: There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss.
Derivatives: The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss.
Emerging market: These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.
Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company.
Interest rate: The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise.
Government securities exposure: The Fund may invest more than 35% of its assets in securities issued or guaranteed by a permitted sovereign entity, as defined in the definitions section of the Fund’s prospectus.
All information is as at 30.06.19 unless otherwise stated.
Indices are shown for illustrative purposes only, are unmanaged and do not take into account market conditions or the costs associated with investing. Further, the manager’s strategy may deploy investment techniques and instruments not used to generate Index performance. For this reason, the performance of the manager and the Indices are not directly comparable.
If applicable FTSE data is sourced from FTSE International Limited (‘FTSE’) © FTSE 2019. Please note a disclaimer applies to FTSE data and can be found at www.ftse.com/products/downloads/FTSE_Wholly_Owned_Non-Partner.pdf
Fund ratings may be provided by independent rating agencies based on a range of investment criteria, and do not constitute investment advice by Investec Asset Management. For a full description of the ratings please see www.investecassetmanagement.com/ratings.
Dynamic Planner® is a registered trademark of Distribution Technology. The Elite Rating™ system is proprietary to FundCalibre Ltd., but should not be taken as a recommendation.