Click play below to view a recording of our latest webinar titled “The Fund protecting investors from market volatility.”
What was covered
As we’ve warned for some time, the trillions of dollars of stimulus propping up economies throughout the pandemic are now creating heightened inflationary pressures, forcing central banks to tighten monetary policy and raise interest rates sooner than planned.
As inflation in the US hit a near 40-year high in December, the U.S. Federal Reserve has signalled monetary tightening at a much faster pace than expected until very recently, with leading economists now forecasting at least 3 interest rate hikes in 2022 and 3 more in 2023.^
Higher interest rates could cause sustained downward pressures on market pricing, as investors look to improving bond yields and other safe haven assets.
Hosts Nicolas Bryon and Habib Chebli shared the Atlantic Pacific Australian Equity Fund (APAEF’s) outlook for the market; our protection strategies against continued adverse market movements; and how these lessons can apply to your own investment portfolio.
How prepared is your portfolio for the next major correction?
As at January 31, 2021, annualised returns since inception in June 2013 of the Fund are 8.3% p.a.* vs the S&P/ASX200 Accumulation Index returning 8.3% p.a.
Importantly, due to our core focus on downside protection, FE fundinfo (parent company of Money Management) assess the as Fund as relatively lower risk, currently rating the APAEF at 75% 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:
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* 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: FE fundinfo, January 31, 2022: https://investmentcentre.moneymanagement.com.au/factsheets/mi/k1fx/apsec-atlantic-pacific-australian-equity
^ Source: APSEC Funds Management, January 31, 2022: https://www.apsec.com.au/wp-content/uploads/2022/Fund-Performance-Reports/APAEF_202201.pdf