Summary of Investment Objective

To deliver a return over the medium term significantly above the rate paid on cash deposits while delivering a very low level of volatility.

Strategy Overview

Base Currency…………………………… EURO

Total Net Assets. . . . . . . . . . . . . . . .€2.8bn

Annual Distribution Target (Net) . . . . .3.5%

Avg Annual Mgt Charge . . . . . . . . . . 0.56%

Total Expense Ratio . . . . . . . . . . . . .0.75%

Liquidity . . . . . . . . . . . . . . . . . . . . .Daily

Performance of Cash Alternative Strategy vs Cash January 2023

Cash Alternative Strategy January 2023

Commentary on Recent Performance
2022 was a challenging year for the Cash Alternative Strategy, given its relatively high exposure to bonds. Continued uncertainty about inflation and the extent to which interest rates might rise was a persistent negative influence on bond markets through the year. Many corporate bonds are now trading at levels where there is clearly value and where further potential downside looks negligible. As a result, there is every prospect of a recovery in bonds (particularly high yield bonds) in 2023 when markets become more confident about the economic outlook. In addition, we would expect annual distribution levels, which are currently close to 4%, to continue to grow steadily.

Why should you consider the Harvest Cash Alternative Strategy?

You should consider the Harvest Cash Alternative Strategy if you wish to receive better returns than are currently available for cash deposits while minimising the volatility in your portfolio.

The components of this strategy will be monitored by the Investment Department on an ongoing basis but it is not envisaged that there will be regular changes.

The Harvest Cash Alternative Strategy may be of particular interest to clients with pre and post retirement arrangements:

• who want a positive return in excess of cash deposits in the medium term: and / or
• who are looking for alternatives to holding cash in their portfolios.

It may also be of interest to clients who have stepped back from investing as they reach the Standard Fund Threshold.

How do I find out more about the Harvest Cash Alternative Strategy?

To find out more about the Harvest Cash Alternative Strategy and to determine if it is suitable and appropriate for your portfolio please speak to your Client Manager, call us on 01 237 5500 or email justask@harvestfinancial.ie

Click to see further details on the Harvest Cash Alternative Strategy. 

Performance of the Harvest Cash Alternative Strategy over four years.

Though holding cash is a sure bet, your gains will be minimal given the extremely low cash deposit interest rates. A world of low deposit returns is challenging for investors. Many are looking for solutions that have the potential to generate higher returns without taking significantly higher levels of risk. The Harvest Cash Alternative Strategy looks to address this.

The chart and table below show the performance of the Harvest Cash Alternative Strategy vs. cash deposits over the past four years assuming an equal holding in all three selected funds. An investor in this strategy could have earned almost 23% over the past four years compared with less than 4% from cash deposits. It is our expectation that future returns of the three selected funds will not be as high as recent years but should be comfortably ahead of cash deposits.

Source for the chart and the table: Financial Express Analytics.
Assumptions for the chart and the table: for simplicity the effect of commissions and other charges are ignored. The return is based on an investment in the three selected funds and does not represent the return achieved by individual accounts linked to the funds.

The Harvest Cash Alternative Strategy is to target an average annual return of 3-5% over the medium term from a portfolio comprising a mix of the selected funds.

How do I find out more about the Harvest Cash Alternative Strategy?

To find out more about the Harvest Cash Alternative Strategy and to determine if it is suitable and appropriate for your portfolio please speak to your Client Manager, call us on 01 237 5500 or email justask@harvestfinancial.ie