Investec Diversified Income Fund

This fund offers a simple strategy; its aim is to be defensive and primarily it looks to deliver an income of between 4-6% p.a., and to deliver this with half the volatility of equities at any given point in time.

In terms of being defensive the manager explained that this fund will not do 20% in a good year, it is more than likely to hover around 5%. We talked about whether seeking high income assets introduces risk and Jason explained that this is not necessarily the case. For example, with emerging market bonds they have high yields but high volatility. By using hedging strategies, they can reduce the risk on these assets but the trade off is a reduce yield. The point being made is that they can use strategies to reduce the risk of any single holding….read more

Fund Facts Morningstar

Notes

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