Solution to Low Cash Deposit Rates

It has been our view for years that interest rates will stay lower for longer. This presents a real challenge for investors, as traditional “safe” assets such as cash are very likely to cause savers to suffer a loss of purchasing power over the medium to long-term. This environment is forcing investors to consider how best to protect their wealth over the coming years. With this in mind, Harvest have compiled the “Harvest Cash Alternative Strategy”.

How Funds were Selected and What this means for you?

The Investment Department of Harvest has surveyed some 150 funds in the international marketplace in an attempt to identify funds which meet the following criteria:

We are happy to describe liquid low volatility funds which meet these criteria as reasonable proxies for cash deposits. Not surprisingly, such funds are not common and from the original list of c.150 the vast majority failed to meet at least one of the above criteria. We have narrowed the list down to just three liquid low volatility funds which satisfy all of the above criteria and are our selected 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 does the Harvest Cash Alternative Strategy fit in with your portfolio?

Our Investment Advisory Service brochure details recommended ranges for the four primary categories of investor for each asset class i.e. equities, bonds, property, cash, etc. In our view many of our clients now need to consider reducing cash (risk rated 2) to 5% in favour of liquid low volatility funds (risk rated 3) which should deliver a positive return over time without the risk of a material downside. For illustration purposes:

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