It can’t have escaped anyone’s notice, that 2016 was full of surprises, unpredictable markets, political earthquakes and seismic currency movements. It certainly led to many fund managers and economists starting to notice that their crystal balls were developing cracks; a lot of them have now admitted that they’re actually broken.
A diversified approach to investments
AT NOW: Pensions, we never believed in the crystal ball method of fund management in the first place. Our diversified approach to investment management was deliberately designed to be able to hold a steady course no matter how choppy the conditions might become. It’s true that a few fund managers made big gains on their foreign investments when sterling dramatically fell after the surprise Brexit vote, but we maintained our positions which hedge out currency exposure, as we didn’t (and still don’t) feel comfortable in exposing members to volatile currency movements.
The Diversified Growth Fund delivered a healthy 10.8% investment return over the full year 2016, and the Trustee Board is very happy with that return on behalf of the members.
2017 has a lot more to give, and I don’t think anyone feels that we will be free from earthquakes for a while yet. We just intend to hold a steady rudder and keep everything shipshape.