PERSPECTIVE3-5 min to read

Charity Multi-Asset Fund: Investment update

Tom Montagu-Pollock and Joe Davies present an overview and update on the Fund’s investment philosophy, performance, our economic outlook and current positioning.

13/05/2021
8935

Authors

Tom Montagu-Pollock
Co-Head of Charities and Fund Manager
Simon Adler
Fund Manager, Equity Value

Tom and Joe are joined by Simon Adler, who is a Fund Manager on the Schroders Value Team. Simon introduces one of the Charity Multi-Asset Fund’s newer holdings, the Schroder Global Recovery Fund.

Over the last 5 years the Charity Multi-Asset Fund has returned +7.3% p.a. net of fees, exceeding the target return (inflation +4%) of +6.2% p.a.

We remain positive on equities with the rolling vaccination programmes in 2021 alongside more potential stimulus improving the outlook, but risks to global growth and earnings remain. We have increased our exposure to value and cyclicality, but maintain conviction in long term secular themes including technology and health care. We are underweight Bonds, valuations remain expensive despite recent yield moves although government bonds provide some portfolio insurance characteristics. We prefer US and Chinese government bonds due to relatively higher yields and diversification benefits. We prefer corporate and inflation linked bonds to conventional government bonds. Finally we remain overweight alternatives, they provide attractive diversification characteristics compared with equities and bonds. We have recently added to our absolute return position which looks to deliver less correlated returns as well as maintaining our exposure to real assets with long dated visible revenue streams.

This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

Authors

Tom Montagu-Pollock
Co-Head of Charities and Fund Manager
Simon Adler
Fund Manager, Equity Value

Topics

The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.