Diversification is the cornerstone of a sound portfolio to suit your financial situation whatever the market circumstances. Government bonds act as a solid buffer, earning good returns particularly in periods of market turmoil and stable interest in better times. But you can also add value to your portfolio by including alternative strategies.
These strategies reap dividends when markets rise and fall, leaving the return on your portfolio less prone to wide fluctuations. Alternative strategies therefore need price movements in order to profit - which is, of course, why it is unwise to rely on these strategies alone. In periods of economic prosperity and price rises, prices tend to fluctuate less. In these circumstances, equity investments perform particularly well. But because it is impossible to predict when the market is going to turn, it is wise to have a well diversified portfolio. Investing more in certain strategies is a simple way to ensure that you are not left running to catch up with events.
In view of the prospects for the months ahead, we believe that Man Investments would be a particularly good choice to compensate for the unrest and uncertainty. Their computer-guided investment strategy AHL (AHL Diversified Markets EU) is well positioned to profit from the current fluctuations that the financial markets are experiencing. Since 1994, AHL has proven to fare well in times of financial uncertainty. Between the start of 2008 and August 2008 AHL achieved a return of +11.8%, compared with performance of –15.0% by the worldwide equity markets. AHL’s average annual return since its launch in 1994 has been +14.9%, compared with an annual average performance of +5.3% by the worldwide equity markets over the same period.
Finsens will be happy to help you settle on an appropriate investment strategy and then to select suitable asset managers.
To find out more, simply e-mail us at info@finsens.nl.
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