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Fund expansion to boost diversification

Rushton Financial Services has expanded its Global Market Neutral Fund into 23 countries, making it one of the most internationally diversified of its type available to Australian investors, including SMSFs.

The flagship fund offers genuine diversification to reduce risk, using a multi-thematic investment strategy, as well as its international exposure to around 670 positions in markets across the Asia-Pacific region and Europe.

Further, it has invested in only the largest and most heavily traded instruments, providing a high level of liquidity, with minimal currency exposure.

“Importantly, a market-neutral portfolio diversified across hundreds of positions is actually more diversified than a typical share portfolio holding hundreds of shares,” Rushton Financial Services executive director Glenn Rushton said.

“Rushton’s funds give investors international exposure without any significant exposure to currency movements or share market risk – a key consideration for investors wanting to gain a genuine benefit from global diversification.”

In the search for yield in the current low interest rate environment and as the global financial crisis has slowly faded from investors’ minds, there has been a steady and worrisome return back to risky growth assets by older investors, who should be seeking lower volatility investments, Rushton added.

“We’re also due for a major market correction, with historical United States research showing that since 1929, a bear market – fall of 20 per cent or more – occurs on average every three-and-a-half years, with an average fall of 35.4 per cent,” he said.

“Diversification is the only free lunch in finance, and that’s exactly what we’re delivering to SMSF and other investors with our expansion into a range of new markets.

“Our aim is to smooth overall performance and maintain consistent returns through all economic conditions.”

The Global Market Neutral Fund marked its second anniversary on 16 March.

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