By: Peter McLean
Multi acid investing can be interpreted in
many different ways but for us essentially what
we're talking about is investing in a portfolio which consists of
not just a single asset class such as equities, but
also combines cash fixed income
alternative assets such
as private Capital Commodities and others
and there are two main benefits of doing this.
The first one is that as the
economic cycle evolves and sometimes
shifts very suddenly these different asset classes
behave in different ways and that
means for an investor you can
over time smooth out your journey that
you're experiencing in pursuit
of your long-term investment objectives. The
second thing is by opening up your investment
Universe, you naturally on
a more opportunities to achieve those
objectives.
For example credit markets currently yielding
quite significant yields to
maturity often higher than dividend yields that
are available in the equity Market. We see good opportunities
in Commodities as well for long-term growth and
some of the structural drivers that are taking place there. And of
course in private Capital where if you're able to take that
very long-term view, there's some some really compelling opportunities
available.