Diversity should be the cornerstone of every investment portfolio. While targeting returns on the equity market is important there are those clients who want to balance the associated risks/return profile with a more secure asset class. The only problem with sitting in cash offshore is that you earn absolutely no interest and you will effectively be guaranteeing that your “investment” will be eroded by inflation over time.
Foundation Fund Managers recognized this problem way back in 2003, and our inhouse investment committee has structured a property centric fund that has zero exposure to the equity market. With the asset base of this product being spread across the UK and European student housing sectors our fund is designed to deliver steady annual returns of between 3% and 5%. In boom times our fund will simply tick along, just as it will in times of market turmoil like during the 2008 global financial crisis.