Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at

SLI Gars fund's top trades revealed

by Robert St George on Jan 17, 2014 at 08:07

Reviewing the fund’s performance in recent months, the strategist highlighted several successful Gars investments and expressed confidence in some that have not yet paid off.

Contributing to a return of 7.5% for 2013, with 1.32% coming in November and 0.84% in December, Ford first pointed to an investment backing Japanese equities over Korean equities. This was the best performing position in November and second best in December, he said.

This was primarily due to currency effects. With the effects of Abenomics well known, Ford contended that developments in Korea had been just as important.

‘Political changes in Korea mean there is a lot less political will to intervene and weaken the won,’ he argued.

Owning the major oil companies had helped in December too, Ford said, having responded well to optimism about the global economy, while offering an attractive yield of around 4%. His comments were made ahead of Shell's fourth quarter profits warning on Friday.

Gars has furthermore used this investment as a hedge against higher oil prices, and it has replaced a position in Russia that the fund had used for the same purpose.

‘If there is a flare up in the Middle East, this strategy could essentially get us out of jail.’

Detractors from performance at the end of 2013, however, included investments in global listed real estate. Ford nevertheless remains confident on property for the long-term, emphasising that two-thirds of the returns historically came from income.

A second negative was the conviction that long-dated European bond yields would rise. ‘What we’re looking for here is essentially demand at the long end of the European curve to fall,’ Ford said.

He maintained that changes to the asset allocation of Dutch pension funds would still result in lower demand for long-duration European bonds though.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home

As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment

With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the funds


On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet