Last month we launched “Funds in Focus” a series of blogs aimed at scrutinising some of main funds available to Irish Investors. We have already looked at “Risk Based Funds V Static Funds” in a recent blog which you can read here. This blog will focus on the Davy Global Portfolio Strategies.
The Davy Global Portfolio Strategies (GPS) provide three different options, allowing investors to choose one solution to their long term investment objectives. The funds (and risk ratings) are called:
- Cautious Growth Fund (3/7)
- Balanced Growth Fund (4/7)
- Long Term Growth Fund (5/7)
Each fund has a different asset mix with the Cautious Growth Fund being the most defensive of the 3 funds. The main features of the GPS funds are as follows:
- Each fund has a different investment profile
- The funds are globally diversified combining equities, bonds and alternative investment funds
- Each fund has a combination of active and passive fund managers
- Each fund can have as many as 20 different fund managers
- The funds attract very competitive Total Expense Ratios (TER) – effectively the cost of investing in the fund
- The asset allocation of each fund is constantly monitored that benefits from the Davy Investment Strategy Team
- The GPS funds do not attract the 1% government levy
At Metis Ireland, we have recommended these funds to our clients over the past year as we believe they are one of the best diversified portfolio investment solutions on the market. In line with almost all diversified portfolios, the funds have performed very well over the past year.
We do believe that the performance over the past year has been exceptional and that investors should not expect similar returns over the next 12 months. We have a bearish view for the short term and believe that an investment portfolio that is diversified by geography, asset class and fund manager has the best chance of withstanding any markets shocks. The Davy GPS portfolios tick these boxes and we believe that the TER applying to each fund represents fair value for funds that contain up to 20 different fund managers.
As with all investments funds, investors need to ensure that they are satisfied that they are investing for a period of at least 5 years. The most successful investors will be those who have a long term plan that is regularly reviewed. We believe that the Davy GPS funds will match many investors’ requirements for long term investing.
Metis Ireland Ltd t/a Metis Ireland is regulated by the Central Bank of Ireland. All content provided in these blog posts is intended for information purposes only and should not be interpreted as financial advice. You should always engage the services of a fully qualified independent financial adviser before entering any financial contract. Metis Ireland Ltd t/a Metis Ireland will not be held responsible for any actions taken as a result of reading these blog posts.