Equities cover a very wide range of world markets with the potential for growth not only from traditional markets such as Japan, Western Europe including the UK, and North America but also emerging markets in regions of the world that are experiencing rapid change such as Eastern Europe, China, Russia, India and South America.
In addition certain growth sectors such as commodities can be targeted which have cross border and intercontinental impact capabilities not confined to the economic cycle of a particular region.
It is the ability to gain exposure to potential growth across an almost limitless number of sectors and companies that makes equities a key component of the fund manager’s armoury in creating a balanced investment strategy.
Equity performance is directly linked to the relative success, and therefore value, of each underlying company within a portfolio of shares, which in turn may be influenced by economic, political and environmental conditions.
While equities have proved to be one of the best performing asset classes over the long-term, returns can be volatile and to counter this volatility the Sub-Funds will seek to invest in global equities through unit trusts or collective investment schemes, to ensure that the exposure to any one region, sector or strategy remains highly diversified therefore minimising the volatility associated with any single equity.
The equity exposure may reflect a bias toward the relevant Sub-Fund’s base currency so as to avoid unnecessary currency volatility, however, exposure to a diversified range of regions and markets will be maintained.
The Private Client Sub-Funds have the ability to hold a proportion of equities which could vary at any time as market conditions dictate, meaning that either a more aggressive or defensive position can be taken.
Investment means that your capital is at risk and the value of investments can fall, therefore you may get back less than you invested.Past performance is no guide to future performance. There is no guarantee that the tax efficient nature of any investment will remain.
Your capital is at risk and the value of investments can fall, therefore you may get back less than you invested.