Lumenary cuts cash by 56%

lumen cash defensive

11 October 2019
| By Laura Dew |
image
image
expand image

Lumenary Investment Management has reduced the cash weighting on its Global Founders fund by more than half, having previously held more than 50% of the fund in cash as a result of defensive positioning.

A year ago, the high conviction global equity fund held 65% of the fund in cash but this had steadily declined over the last 12 months.

As at 30 September 2019, the cash weighting had fallen to 28%.

Founder and fund manager Lawrence Lam said the decision to be defensive meant the fund avoided the worst of the volatility at the end of 2018. During these three months, the ASX 200 fell by more than 7% while the All Ordinaries lost more than 8%.

“Late last year we decided to hold a large proportion of cash as we prepared for the ensuing market volatility,” Lam said.

“This strategy turned out beneficial as we have since seen a deterioration in market sentiment arising from Brexit, the US/China trade war, Hong Kong protests and concerns around historically low central bank interest rates. The cash has protected our capital and will enable us to proactively capture market opportunities in line with our investment strategy.

“Looking forward, we will continue to deploy capital into areas where we see value - Sweden and UK in particular. Our cash holding is now at 28% and we are well placed to act quickly as opportunities arise.”

Performance of ASX 200 and All Ordinaries indices over three months to 31 December, 2018

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 hour ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 6 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 4 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 7 hours ago