Fund of the week: Venture into spicier investments
The SVM Global Opportunities fund of funds gives investors access to areas that can be hard to invest in, such as hedge funds, derivatives and structured products, says its manager Colin McClean.
It's at times like these that the crowds start pouring out of funds, says Colin McClean, manager of the SVM Global Opportunities fund of funds. Which makes it the perfect time for smart investors to be "drip feeding money into the market", he tells Investment Adviser. "One's suspicion is any fund on a 20%-plus discount will ultimately prove to be a profitable investment. As long-term investors, we are spoilt for choice."
Judging by McLean's criteria, his own fund is overbought on a 5% premium to net asset value (NAV). But with a 191% gain over the past five years, against 58% for the FTSE World, its popularity is not surprising. Born in Venezuela, the Edinburgh-based manager invests in a range of specialist funds, from private equity to hedge funds, to exploit global opportunities for long-term growth.
Many investors don't like the idea of a fund of funds with the extra charges it brings. But as Kypros Charalambous of Barclays Wealth says, the SVM Global fund gives him access to "spicier areas" that can be hard to invest in. "It gives me something different. It has alternative exposure, access to hedge funds, derivatives and structured products," he tells Money Marketing.
But McLean also buys conventional country-focused funds, such as JPMorgan Russian Securities, his top holding. "Russia now has a stable political background, large current-account surplus, a growing economy and is a major exporter of much sought after commodities," he tells Investors Chronicle.
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