By Eve Maddock-Jones, Reporter, Trustnet, 24 February 2022:
Trustnet asks fund pickers which portfolios deliver steady returns in the long-run without taking on huge risk.
The opening weeks of 2022 have tested investors resilience to volatility in a way many have not experienced before. Equity markets in particular have struggled, facing the joint headwinds of rising inflation and interest rates which have shaved off future returns from some of the most highest-growth areas of the market.
Indeed, since the start of the year, the only major market to have made a positive return is the FTSE 100, as the below chart shows.
This has been exacerbated by the growing tensions between Russia and the Ukraine, with investors diving for cover in more defensive assets.
Considering this, Trustnet asked a group of fund pickers for lower-risk portfolios they can hold for the long term, but that should still provide decent returns if markets rebound.
First up was the BNY Mellon Real Return..
Another open-ended option recommended for low-risk investors was the $2bn (£1.5bn) M&G Global Macro Bond..
Moving away from the open-ended space the next portfolio was picked by Charles Stanley’s chief analyst, Rob Morgan. He highlighted the £3.8bn RIT Capital Partners trust, an ideal holding for those concerned about inflation in the long run…
Next was one for income-seeking investors chosen by James Carthew, head of investment companies QuotedData. He picked the JPMorgan Multi Asset Growth and Income, also from the IT Flexible Investment sector.
It targets a total return in excess of 6% per year over rolling five-year periods, all while keeping volatility to about two-thirds that of an equity portfolio, while also growing its dividend at least in line with inflation. It currently has a dividend of 3.84%.
Approaching it fifth birthday next month, the trust has made higher returns than the sector, making 24.6% since launch.
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