True Potential portfolios ride out Brexit volatility

True Potential portfolios ride out Brexit volatility

True Potential has delivered returns on its portfolios in the period after the European Union referendum, with bosses putting this down to the fact the funds are “among the most diversified investments available in the UK”.

Some of the funds have seen growth of nearly 11 per cent since their inception in October 2015 while over the period between 24 June and 30 June all 11 funds grew by between 1.53 per cent and 3.67 per cent.

Mark Henderson, a senior partner at True Potential, said this is because the funds are effectively “multi-manager multi-asset”.

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He said: “From the very beginning when we launched the portfolio we felt multi-asset funds were the best solutions for retail clients in the UK.

“The funds we use are already in their own right very diversified but when you look at each of the different managers in the portfolios they have got very different asset mixes, even for the same general risk profile.

“We reckon we have got the most diversified set of investments available in the UK.”

Mr Henderson said that in the run-up to the referendum the portfolios were re-balanced towards managers who are particularly experienced at managing volatility.

Over the period following the referendum, True Potential’s best performing portfolio was the managed aggressive which returned 3.67 per cent.

Since inception this portfolio has returned 10.86 per cent, making it True Potential’s best performing portfolio overall.

Since the portfolios were launched in October, investors have seen their portfolios grow by between 5.74 per cent and 10.86 per cent.

Colin Beveridge, True Potential’s chief investment officer, said that in recent months the company had been asked a lot about why it had very little direct exposure to property across its portfolios.

He said: “We have always used the same arguements against property which are around cost, which tends to be higher, and the liquidity issue.

“In the last six to nine months we have been getting more and more questions about it. What we tend to find is that when a particular asset class is doing particularly well we get more questions about it.

“It is not that we don’t like property, it is just that we are very mindful of the liquidity aspects.”