Nucleus Wealth says 'remain cautious'
Wealth and superannuation manager, Nucleus Wealth, has said it will remain cautious, as it managed to de-risk portfolios before the markets went into a tailspin, which helped five of its six funds remain in positive territory for 12 months to 30 June, 2020.
Both Nucleus’ growth funds, Tactical Growth and Core International, managed to outperform their peers while its other three funds, Tactical Income, the Tactical Accumulation and the Tactical Foundation, ranked first, sixth and sixth, respectively, in their index categories, according to Morningstar.
The Core Australia Fund was the only fund to slip backwards, the firm said.
Nucleus Wealth’s head of investments Damien Klassen described the past 12 months as difficult, especially February when the impact of the COVID-19 pandemic first became apparent.
“Working on the premise that prevention is better than the cure, we acted quickly to de-risk our portfolios before the markets went into a tailspin, thus ensuring our clients were protected from the market carnage that occurred once markets realised the gravity of the pandemic and its inevitable economic fallout,” he said.
“We still remain cautious, and although that has meant missing out on some of the subsequent market upswing, it has still allowed our portfolios to outperform significantly over the year without our investors experiencing the extreme market volatility of many other fund managers.”
Recommended for you
There is one specific risk that is a significantly higher concern for financial services directors compared to companies overall and is impacting their risk appetite, according to the AICD.
Global fund managers are shunning bonds, with the asset class seeing the largest drop in allocations in more than 20 years.
Australian Ethical has seen its funds under management reach $10 billion, driven by organic customer growth and superannuation contributions.
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.
