Listen back to the Global Real Return webinar and hear Suzanne Hutchins, Portfolio Manager, Real Return Team talk about the fund.
The main points she covers include:
- A cautious outlook was very much the tone set by Newton as the fund continues with its Core & Satellite approach – a core of return seeking assets, surrounded by assets that will help to reduce risk
- Newton expressed the view that the effects of recent monetary policies have lead us to a world of greater uncertainty and volatility, with heightened risks in the global economy and asset prices – more so now than at the time of the Lehman Brothers crisis, and the fund is currently positioned with a lot of protection in light of that
- Gold exposure continues to be around 6.5% of the fund assets mix. In 2013 gold was one of the biggest detractors from performance as the price of gold continued to fall during the year. Newton continue to believe that the strong rally in risk assets that we have been seeing lacks fundamental rationale. That is why they continue to hold gold – any change of policy regarding the provision of liquidity to the global market could see a negative reaction from markets and warrants holding an asset like gold.
- Newton’s macro economic views (themes) continue to drive the approach to asset selection within the fund. These are:
– Too much debt
– Demographic headwinds
– Globalisation
– Rapid technological change
– High energy costs
Click here to listen.