As with any investment, your or your clients’ capital is at risk. Any income is not guaranteed and can fall as well as rise.
SAINTS’ objectives are to provide a high, dependable income for shareholders, while growing capital and income ahead of inflation. Its role isn’t to mirror the market index, but to offer a collection of growth drivers designed to compound capital and income steadily, diversify clients’ wider portfolios and provide resilience when markets become less forgiving. That can look dull when a narrow group of companies drives markets higher as they are now, but it may matter more when capital becomes discriminating again.
This quarter, we compare the portfolio’s beliefs with those of an index tracker and explain how we test them.
Believe it or not
In 1918, Robert Ripley began publishing illustrated newspaper panels under the title “Believe It or Not!”. Their appeal lay in presenting claims that seemed improbable but were, apparently, true.
Modern stock markets have their own curiosities. Passive funds own a growing share of assets, while fundamental investors account for little daily trading. Many transactions are driven not by value, but by index rules, flows and momentum.
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