International advice firm Blacktower has launched a new investment fund designed for the savvy yet cautious investor.
The Nexus Global Cautious Portfolio, a sub-fund of Libero International SICAV Plc, looks to take advantage of this new investment landscape with a portfolio featuring over 60% in quality bonds as its bedrock. This will be coupled with a more modest allocation to equities.
In a statement on 27 January, John Westwood, Blacktower's founder and group chairman, said: "We've wanted to offer a lower cost and more tentative fund for a long time. Low-risk safe havens have not served investors particularly well in the recent past as the concept of ‘TINA' (There Is No Alternative) prevailed .
"The goal was creating a low-risk investment opportunity that still delivers a good return. This has been problematic in the past, with the idea that one needed to be predominantly invested in equities dominating, as there seemed to be no way to create a safe investment that delivered.
He continued: "TINA's reign is over as high inflation has forced major central banks to increase the cost of money. 2022 was the worst year in 100 years for multi-asset investors.
"The vast reduction in negative-yielding debt provides perhaps the best indication of the major change in the investment environment over the past 12 months. While this has been a painful period for multi-asset investors, it has created a reasonable alternative to equities."
Westwood added: "This fund is designed for those with a desire to have something more risk averse. It's lower risk, but still delivers a return and provides a viable alternative for those investors who are less willing to accept the volatility of the equity market.
"This is a great opportunity for the more cautious investor who may be closer to drawing down, or perhaps simply has a more cautious outlook on life, to take advantage of an investment opportunity that isn't nearly as volatile as other options. "
