Canaccord Genuity’s five funds to navigate volatility
By Sonia Rach, 28 Feb 18
Canaccord Genuity Wealth Management’s fund expert and investment manager, Patrick Thomas, picks his top funds for handling the return of volatility.
He said it is “harnessing unambiguous long-term growth from the increasing need for resource efficiency and ever-tighter environmental regulations”.
Outlining the environmental technology theme, he said this fund offers diversification and is a hedge against risks to the business models of more traditional and popularly held global large-caps.
It is managed by Bruce Jenkyn-Jones (pictured) and Jon Forster.
Against the FO Equity – Ethical benchmark, the trust has outperformed on a three-year and five-year basis with returns of 50.2% and 76.4%, compared to 34.7% and 58.5%.
Thomas said: “The managers have long experience of investing in this area, and have demonstrated their value over time, with a five-year alpha of 2.3% pa.
“Valuations are towards the lower of historic ranges, whilst Impax’s earnings growth expectations continue to ratchet higher. Over five years, the managers have an annual alpha score of 2.3% compared to the average of 0.93% for the AIC Global Sector.
“The portfolio has a slightly cyclical tilt, which aligns it to the current trajectory of the global economy. This provides investors an attractive opportunity to ‘future-proof’ their portfolios against market and real-world risks.”