As part of our investment proposition, we have a core holding in Seven Investment Management’s unitised funds. I just wanted to share with our clients and prospective clients the value they have added recently.
We have warned of the possibility of both equity and bond values falling and the need for alternative strategies. Seven introduced a S&P 500 Put Spread into the portfolio in case this happened and guess what?….. it has!
The chart below plots the performance of the Put Spread versus the S&P 500 Index and US 10 year bond prices, from the 27th July (when they entered into the position) to date (16th September 2016)
(Left axis – S&P 500 & US 10 Year Treasuries; right axis – Put Spread)
The strategy didn’t pay off initially but now look at was has happened!
This is one of the reasons why we choose 7IM.
Written by Gary Neild
Chair of the Blue Sky Investment Committee