by Jennifer Hill, from interactive investor, 10th July 2025:
They say diversification is the only free lunch in investing – and multi-asset funds aim to serve it all on one plate.
In theory, these all-in-one solutions cushion losses when one market tumbles, as happened during the stock market sell-off triggered by President Donald Trump’s “Liberation Day” tariffs..
In the Association of Investment Companies (AIC) Flexible Investment sector, seven investment trusts have capital preservation as part of their objective..
Three of these trusts – Caledonia Investments, Majedie Investments, and RIT Capital Partners – publish only monthly net asset values, making it impossible to know exactly how they fared during the week-long slump. But most wealth preservation trusts are in positive territory over longer periods this year.
“Each of them focuses on preserving capital over the medium to long term, so focusing on short-term fluctuations in markets may be a bit misleading,” says James Carthew, head of investment company research at QuotedData. “However, this was a major market event – and all of them passed the test with flying colours.”
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