A fund that can limit downside can be helpful in many balanced portfolios in all market environments. And with a very uncertain environment for reasons including an unclear future for the UK due to its scheduled departure from the European Union and historically high US equity markets, limiting downside is more important than ever. With poor returns from low-risk bonds, investors need to find other ways to diversify the equity and higher-risk portions of their portfolios. Multi-asset funds that look to reduce volatility and downside are an option, as are absolute-return funds that aim to deliver positive returns.
NEW ENTRANT: SVS Church House Tenax Absolute Return Strategies (GB00BNBNRF27)
Ms Schooling-Latter suggested adding SVS Church House Tenax Absolute Return Strategies. This multi-asset fund aims to make positive returns over rolling 12-month periods with low levels of volatility, as capital preservation is a key aim. The fund launched in 2007 since when it has a good record of delivering positive returns. The fund fell slightly in last year and in 2011, but this was less than broad indices such as the FTSE All Share, FTSE World and MSCI World.