Click play below to view a recording of our latest webinar titled “Risk management strategies to counter the growing risk of inflation.”
What was covered
With equity prices at speculative all-time highs, higher than expected inflation growth could cause sudden share market sell downs, as bond yields improve and expectations of earnings growth drop. That moment could be upon us sooner than expected.
The US Federal Reserve’s Open Market Committee in July released substantially upgraded GDP growth and inflation forecasts, with the key projection for core inflation rising from 2.2 per cent, up to 3 per cent and interest rate expected sooner than previously forecast.^
For months leading economists have warned of the potential for a sudden loss of confidence and a major collapse of asset values. How prepared is your portfolio for the next major correction?
Hosts Nicolas Bryon and Habib Chebli showed how the Atlantic Pacific Australian Equity Fund (APAEF) is proactively repositioning our portfolio holdings to provide protection against sudden adverse market movements, and lessons for your own investment strategies.
How prepared is your portfolio for the next major correction?
As at August 31, 2021, annualised returns since inception in June 2013 of the Fund are 8.4% p.a.** vs the S&P/ASX200 Accumulation Index returning 9.6% p.a.
Importantly, due to our core focus on downside protection, FE fundinfo assess the as Fund as relatively lower risk, currently rating the APAEF at 76% of the volatility than the ASX200*.
Consequently, the largest drawdown the Fund has experienced since inception in June 2013 was -7.7% while the largest drawdown for the S&P/ASX 200 in the same time period was -26.7%.^
For investors who are risk-averse and need decent returns to fund their lifestyle into retirement, the APAEF may offer an attractive solution especially in current market conditions.
Simply complete your details below and we’ll email you the latest fund information or promptly answer any questions you have:
*Source: FE fundinfo, August 31, 2021 https://investmentcentre.moneymanagement.com.au/factsheets/mi/k1fx/apsec-atlantic-pacific-australian-equity
** Fund Returns are prepared on a redemption unit price basis after management and performance fees inclusive of GST. Distributions are assumed to be re-invested at the mid unit price. Individual tax is not taken into account in deriving Fund Returns. In calculating the NTA, the Atlantic Pacific Australian Equity Fund (“Fund”) asset values have been calculated using unaudited price and income estimates for the month being reported. Past performance is not indicative of future performance.
^Source: APSEC Funds Management, August 31, 2021: https://www.apsec.com.au/wp-content/uploads/2021/09/APAEF_202108.pdf