Friday Fund Review
An actively managed, conservative global fixed income solution that offers attractive US dollar cash-plus returns for limited additional risk aimed at conservative investors looking to diversify into a low-risk global income fund that targets Us dollar cash-plus returns from a diversified portfolio of actively managed global income-generating fixed interest assets OR used as a building block within a balanced portfolio.
Oil’s history is marred by conflict, with wars fought over its control underpinning the darker chapters of modern geopolitics. The Gulf War showcased this starkly, as global powers clashed over oil-rich territories. Yet, in the shadow of such strife, today’s oil behemoths like BP and Shell are pivoting towards renewables, using oil revenues to foster sustainable energy solutions. As they invest in solar, wind, and biofuels, these giants are redefining their legacy, propelling us towards a future where the energy that once fueled wars now powers a cleaner world. Let us take a closer look at oil and how the iShares MSCI World Energy Sector ETF unlocks it’s performance.
A pathway to Focused, Long-Term Capital Appreciation
U.S. equities faced a decline in Q3 2023, with initial optimism fading due to expected prolonged high interest rates. While the labor market shows strength, there are economic concerns, especially with a forecasted rate hike by year-end. Tech giants experienced downturns, pulling the broader market down with them. In Europe, shares decreased due to interest rate hike worries, but the energy sector saw gains. The UK market, on the other hand, showed improvement, led by energy and basic material groups. South Africa’s economic growth outlook improved slightly but faces many challenges, including leadership changes in key state enterprises and infrastructural issues. Overall, given the complexities and volatility in global markets, a diversified, long-term investment strategy is essential. At InvestLife, the approach remains focused on long-term goals, emphasizing the importance of patience and resilience in investment decisions.
Baillie Gifford, established in 1908, is a renowned independent investment management firm based in Edinburgh, Scotland. With a global reach and a dedication to long-term growth, the company has consistently prioritised innovative strategies and deep research. Renowned for its forward-thinking approach, Baillie Gifford has earned the trust of clients around the world, managing diverse portfolios that span various sectors. Their commitment to excellence is evident in their track record and progressive outlook on investment opportunities.
Durable cash generation refers to a company’s consistent and reliable ability to produce positive cash flow over extended periods, regardless of external market conditions or short-term economic fluctuations. This characteristic often differentiates enduringly profitable businesses from those with volatile or unpredictable cash flows.
But now what does it mean for investors and how does Lindsell Train use this principle, among others, to generate returns for the Lindsell Train Global Equity Fund?
Let us take a look
What is it? How does it differ from active investing, and why do we use the Vanguard Dividend Appreciation ETF? in our models?
In today’s Friday Fund Review, I am going to break down the concept of passive Investing, how it works in synergy with active investing, as well as how we use passive investing in your model portfolio by using the Vanguard Dividend Appreciation ETF.
Capital preservation is an investment strategy focused on safeguarding the initial investment without incurring losses. At InvestLife, capital preservation is a key approach for managing portfolios, serving as a foundation for sustainable long-term capital appreciation. Bond funds, such as the T Rowe Price Global Dynamic Bond Fund, offer a way to invest in bonds efficiently, diversifying risk and benefiting from skilled management. These funds don’t have fixed maturity dates, and their value can fluctuate, impacted by interest rate changes. When rates fall, existing bonds’ coupon rates become more attractive, while rising rates make new bonds more appealing. T Rowe Price Dynamic Global Bond Fund pursues income generation while guarding against rising interest rates and maintaining a low correlation with equities. With an average duration below industry average, it is positioned to navigate rate changes. Despite subdued 2023 performance, the fund remains valuable due to its flexibility to seize opportunities, especially aligned with potential Federal Reserve announcements. The fund predominantly invests in a globally diverse bond portfolio and emphasises preserving capital, addressing the intricacies of bond investing that benefit from expert fund management.
In this edition of our Friday Fund Review, we’re focusing on the Ninety One Global Franchise, a meticulously managed fund led by Clyde Rossouw. Built on five key attributes—competitive advantage, market dominance, resilience, financial strength, and smart capital usage—the fund embodies quality investing. Despite its seemingly restrained long-term performance, the fund shines in turbulent times, offering crucial downside risk protection. Looking ahead, as global markets grapple with uncertainty and inflation, quality businesses with resolute earnings and forward-looking strategies are poised to outperform. At InvestLife, we stand behind the Ninety One Global Franchise as a beacon of stability and growth in unpredictable markets.