To deliver a return over the medium term significantly above the rate paid on cash deposits while delivering a very low level of volatility.
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
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.
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:
It may also be of interest to clients who have stepped back from investing as they reach the Standard Fund Threshold.
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.
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.
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
This marketing information has been provided for discussion purposes only. It is not advice, it is provided for general information purposes only and does not fully take into account your financial position, investment needs and objectives, attitude to risk, liquidity needs, capital security needs, capacity for loss, etc. It should therefore not be relied upon to make investment decisions. Prior to any formal investments taking place you will be provided with a detailed suitability letter taking into account all the above and outlining why the Harvest Cash Alternative Strategy and the selected fund(s) are (not) suitable for you.
Past performance is not an indicator or guarantee of future performance. The value of units in the strategy and income received from it can go down as well as up, and investors my not get back the full amount invested. Other charges and taxes payable by an investor may not be included in the figures.
Warning: If you invest in this fund you may lose some or all of the money you invest. Past Performance is not a reliable guide to future performance. This fund may be affected by changes in currency exchange rates. The value of your investment may go down as well as up. Income may fluctuate in accordance with market conditions and taxation arrangements.
Harvest Financial Services Limited is owned by ILGWM Limited (a subsidiary of Irish Life Group), which is part of the Great-West Lifeco Group of companies.
Harvest Financial Services Limited is regulated by the Central Bank of Ireland. Registered in Ireland No.137567.
Registered Office: Block 3, The Oval, Shelbourne Road, Ballsbridge, Dublin 4. Postcode: D04 T8F2