What I Bought Last credit markets , as well as currencies and option strategies . Fulcrum Diversified Absolute Return can be broken down into three separate buckets : “ directional ”, where views are taken on a particular asset class ; “ relative value ” ideas in inter and intra asset-class trades ; and “ liquid diversifying ” strategies , which are primarily trend-following . The key theme across all investments , however , is liquidity , meaning the managers are able to exit trades easily if necessary . Risk control is key to the investment process and the portfolio will always be well diversified by strategy , the number of individual trades and the amount of instruments being used .
Golden age Fulcrum Asset Management has been going since 2004 , but the team members worked together before then , at Goldman Sachs . They have a strong long-term track record going back to the fund ’ s launch in 2012 , producing mid-single-digit annualised returns , but with a beta to global equities of just 0.2 . Fulcrum Diversified Absolute Return has made 43.7 % over the past decade , compared with gains of 24.6 % from the IA Targeted Absolute Return sector . Most importantly , these returns have been generated consistently , regardless of the market conditions . In a world where the cost of investing is a key focus , the fund has an annual management charge of just 0.75 %, and with no performance fee attached . This , in our view , makes it one of the most competitively priced options among its peers . In the current conditions , we believe a fund such as this one should prove to be an excellent diversifier in client portfolios .
James Burns is a managing partner at Evelyn Partners
Issue 88 - October 2022 / 75 /