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Diversifier Fund
Over very long periods (twenty years plus in real terms), equities are the top performing asset class. This is achieved, however, at the price of truly dramatic volatility - witness the 1999-2003 bear market from which the FTSE 100 has still not recovered. A balance to equities is required to reduce volatility and increase peace of mind. Fixed Income, so often described as a low risk stabiliser, is a cyclical investment too and should be held on this basis, preferably during periods of disenflation. It is not a panacea.
However there are other asset classes which should be considered, the so called "alternative investments". These must be judged on their merits and only purchased when considered attractive, but an important feature of these investments is that historically they have had a low correlation with equities and should therefore be effective diversifiers of risk.
The Hasley Diversifier Fund has been designed with this in mind and has been created specifically to mitigate the potentially high levels of volatility and unpredictability of "long only" equity and fixed income portfolios and may be held as an absolute return vehicle, to complement a long only equity portfolio or as a fixed income proxy. Its aim is to achieve positive returns by the use of asset classes whose performance is as unrelated to that of equity markets as possible.
The fund invests in such assets as investment trusts of hedge funds, onshore absolute return vehicles (themselves with different levels of volatility), offshore absolute return funds with distributor status, funds of life policies and other assets with absolute return or diversifying characteristics.
The Diversifier Fund is not an enhanced cash portfolio and could experience volatility, although this should be less than that of a long only equity or fixed income portfolio. Where applicable, a UK taxpayer will pay capital gains tax on the appreciation of shares in the Diversifier Fund.
INFORMATION / RISK WARNINGS
This document has been produced for information only and represents the views of Hasley Investment Management at the time of writing. It should not be construed as Investment Advice. No investment decisions should be made without first seeking advice. Full details of the Hasley Funds, including risk warnings, are published in the Elite Hasley Investment Funds Prospectus. The Hasley Funds are subject to normal stock market fluctuations and other risks inherent in such investments. The value of your investment and the income derived from it can go down as well as up, and you may not get back the money that you invested. Investments in overseas equities may be effected by changes in exchange rates, which could cause the value of your investment to increase or diminish. Capital appreciation in the early years will be adversely affected by initial charges, so you should regard your investment as medium to long term. Past performance is not a guide to future performance. Every effort is taken to ensure the accuracy of this data, but no warranties are given.
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