Investment: what advantages for global funds?

But how are these resources managed? Julie Dickson, Chief Investment Officer multi-asset at Capital Group enlightens us on the principles of managing one of these funds. “For example, in one of our funds multiple assets, we only include stocks and bonds. For example, we don’t put real estate, infrastructure or metals there. We have a traditional approach with 60% stocks and 40% bonds. So the risk is moderate., explains this industry professional. The Fund does not use derivatives to execute short sales.

Bottom up approach

Access is access bottom up. This strategy consists of choosing portfolio values ​​starting from a base (bottom) in the investment world based on the intrinsic qualities of companies. This choice will subsequently be verified on the basis of the main macroeconomic trends (up). “He is in charge of five managers, two of whom specialize in selecting bonds for 25% of the fund’s value. The other three managers can then split their choices between stocks and bonds as they see fit. In this management, the perception of risk in the markets will take precedence.”, explains Julie Dickson. The objective of this fund is to seek capital growth and preservation combined with a level of return that is higher than the benchmark indices.

Investment: is Europe a good choice?

In their investment decisions, managers essentially take a long-term view, with choices focused on different time horizons: eight years, five years, and one year. The largest weight in the portfolio is represented by eight-year investments. “Our managers themselves invest in the funds they manage and are also shareholders of the management company Capital group, which is another motivation for good performance.points out Julie Dickson.

How can investors access this type of portfolio investment funds? We can consider funds multi-asset as a base in the portfolio. A foundation that matches the risk profile while providing some security, that offers diversification across and within asset classes, and that provides access to professional active management. In addition to this base, the investor can then invest in what are known as satellites in other individual shares or in other more targeted funds. “This management also allows us to find in the market, in addition to the big star stocks, stocks that are under the radar, that offer good dividends and that are undervalued. We do stock selection without wanting to stick to the market index“, adds Julie Dickson. This multi-asset fund allows you to integrate some stability into your portfolio with the goal of consistent returns over time.

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