When it comes to savings and retirement planning in particular, balanced funds stand out for their simplicity, effectiveness, and ability to weather market storms. These versatile investment vehicles typically combine multiple asset classes in a single portfolio, with the lion’s share invested in equities and bonds. They offer retirees and investors still building their retirement savings a powerful tool to withstand market volatility through the diversity of a multi-asset portfolio, assisting individuals in achieving their financial goals over time.
Prescient Whitepaper
Portable alpha investment strategies emerged in the late 1980’s and early 1990’s as an innovation within institutional portfolio management, driven by the increasing demand for investment approaches that could generate excess returns, or "alpha," independent of market-related risk exposures, generally referred to as "beta." Strictly speaking, alpha is the return that is not explained by the beta-adjusted return.
When it comes to savings and retirement planning in particular, balanced funds stand out for their simplicity, effectiveness, and ability to weather market storms. These versatile investment vehicles typically combine multiple asset classes in a single portfolio, with the lion’s share invested in equities and bonds. They offer retirees and investors still building their retirement savings a powerful tool to withstand market volatility through the diversity of a multi-asset portfolio, assisting individuals in achieving their financial goals over time.
The recent sharp sell-off in stock markets has alarmed many investors, driven by mounting concerns that the Federal Reserve may have kept interest rates too high for too long. Fears are growing that the risks of a U.S. recession have now risen past a point where it cannot be turned around. The headlines are filled with dire warnings, and market sentiment appears to be shifting towards panic. But is there truly a reason to be alarmed? As a data-driven, scientific investment firm, we firmly believe that the answer is no.
Buckle up, because the market roller coaster just hit turbo mode. The VIX, the market's beloved "fear gauge," has doubled in August, flashing a big, bright warning sign: volatility is back with a vengeance. So, what does this mean for our investments? Should we be hedging our bets, or is it time to embrace the chaos? Let's dive into the Prescient way of navigating these stormy waters.
The latest investment flow data from South Africa's Collective Investment Schemes (CIS) paints a familiar picture - investors trying and failing to time the market. In July 2024, we saw a significant shift in money out of equity funds and into fixed-income funds, with net outflows of R10.9 billion across all fund categories.
Investing in South Africa’s fixed-income market amid various uncertainties, socio-economic issues, elevated yields, and sluggish growth can be challenging. In times of uncertainty, many investors' first instinct is to put their savings into safe-haven funds like money market funds, not considering other investment opportunities that will provide them with better returns.
Traditional investment strategies face mounting macroeconomic and geopolitical challenges in today’s investment landscape. With this in mind, we at Prescient Investment Management have had to, and continue to, leverage innovative approaches to achieve robust returns. An example is our particular areas of interest, high-yield credit and infrastructure investment, where we have focussed considerable energy on identifying the opportunities available to investors.
The investment landscape is evolving, with criticisms of Environmental, Social, and Governance (ESG) taking centre stage and naysayers denouncing it as a PR exercise. Despite scepticism and misconceptions labelling ESG as ineffective or irrelevant, research conducted over the past few years has found ESG investments.
As has always been the case, investors, generally speaking, seek stability without sacrificing growth potential. While equities typically dominate the spotlight, credit investments offer a compelling alternative that is both resilient and adaptable, especially when included as part of a diversified portfolio.
The latest investment flow data from South Africa's Collective Investment Schemes (CIS) paints a familiar picture - investors trying and failing to time the market. In July 2024, we saw a significant shift in money out of equity funds and into fixed-income funds, with net outflows of R10.9 billion across all fund categories.