Charity Multi-Asset Fund: Investment update

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.

The opinions contained herein are those of the author and do not necessarily represent the house view. This document is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Cazenove Capital does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Cazenove Capital has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Cazenove Capital is part of the Schroder Group and a trading name of Schroder & Co. Registered Office at 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. For your security, communications may be taped and monitored. 

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Achieving your charity's investment objectives takes time and thought. To find out how we can help you please contact:

James Brennan

James Brennan

Portfolio Director