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”.
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.
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:
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 firstname.lastname@example.org
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.
Warnings: The projection and expected annual income figures are estimates only and not a reliable guide to the future performance of the three selected funds. The figures refer to the past. Past performance is not a reliable indicator of future results. The value of investment(s) in the selected fund(s) may go down as well as up. If you invest in the selected fund(s) you may lose some or all of the money you invest. Past performance is not a reliable guide to future performance. Income may fluctuate in accordance with market conditions & taxation arrangements.