• Home
  • Solution to Low Cash Deposit Interest Rates – Harvest Cash Alternative Strategy

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:

Solution to Low Cash Deposit Rates - Cash Alternative

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:

Solution to Low Cash Deposit Rates - Cash Alternative

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

Investment Broker of the Year 2018

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.

Market Insights December 2022

December 7, 2022
Current Topics in Markets The latest economic forecast from the OECD predicts that the global economy will have grown by 3.1% in 2022, just over half the growth rate achieved in 2021. For 2023, the picture is no b…

Property as an Investment

October 1, 2018
Assisted by its tendency to grow ahead of inflation over longer time periods, property stands up well to scrutiny when compared with the other major asset classes such as equities and bonds – in a number of global mar…
Join our mailing list to keep up to date with our latest news and events
Follow us

Block 3, The Oval, Shelbourne Road, Ballsbridge, Dublin 4. Postcode: D04 T8F2.
Tel: +353 (0) 1 237 5500, Fax: +353 (0) 1 237 5555. Email: justask@harvestfinancial.ie