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. . . . . . . . . . . . . . . .€1.45bn
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 April 2023
Commentary on Recent Performance (June 2023)
Having had a setback in 2022 as bond prices fell sharply, the Cash Alternative Strategy has recovered steadily through 2023. As interest rates level out, and possibly even fall next year, the recovery of the Strategy should continue. Despite the fall in 2022, the strategy is still ahead of cash on a three year and five year performance basis. In addition, the current average distribution from the three component funds in the strategy is 5.7% per annum, well ahead of cash deposits.
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
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
