How to balance risk for cautious investors is one of the fundamental issues for the fund management industry and their clients, says Alex Scott, Deputy CIO, 7IM
While the investment company sector is not traditionally associated with cautious portfolios, Seven Investment Management (7IM) has been building up positions in the Sector Specialist: Infrastructure sector for the last two months for its 7IM Cautious, 7IM Unconstrained and Personal Injury funds.
7IM has been building up positions in HICL Infrastructure, BBGI and International Public Partnerships after a five year absence. But it is also a sector which Seven Investment Management (7IM) has supported almost from the outset, first investing in HICL Infrastructure in 2007, when 7IM was a mere five year old itself.
Alex Scott, Deputy Chief Investment Officer, Seven Investment Management (7IM) said: “While bonds have delivered stunning returns over the last few years, the issue of how to manage cautious portfolios in a low interest rate environment, and when bond income just isn’t there, is one of the fundamental issues facing fund managers.
“Our re-entry into the infrastructure investment company sector is a reaction to the environment we now find ourselves in. Managers of cautious portfolios need to be looking at assets that can still offer interesting returns while limiting overall portfolio volatility. For us, infrastructure investment companies can be part of that solution. We like the long term, predictable cash flows that infrastructure investment companies can offer, with a high degree of inflation linking and low economic market sensitivity, backed by public sector entities. Recent fund-raisings in the infrastructure sector have offered an attractive entry point.”
The Sector Specialist: Infrastructure investment company sector has been the growth story of the decade in the closed ended fund space. Since the first company launched in 2006, it is now the fourth largest investment company sector, with total assets of £9bn, according to the Association of Investment Companies (AIC).
For further information, please contact:
Seven Investment Management
0203 823 8696
07776 204 610
Notes to editors
About Seven Investment Management:
7IM provides investment services to professional wealth managers, planners, advisers and investors. These include:
- Discretionary investment management with advice
A range of multi-asset portfolios
An investment and open architecture trading platform
A fantastic app, 7IMagine, to bring the client portfolios to life.
7IM – a story of Continuous Innovation
Since 7IM launched back in early 2002, it has pioneered a continuous stream of developments regarding how investment services are provided and charged for. We could just provide a list of our awards but actually think it is more useful to tell you what we have done and what we have provided for clients and their planners - and there is still more to come.
- January 2001 – First Sterling Online Wrap Account launched with ongoing Asset Allocation
- January 2003 – First White Label live
- January 2004 – 7IM OEIC live
- July 2005 – 7IM Platform live
- September 2005 – New 7IM Income Fund launched
- February 2007 – 7IM Sustainable Balance Fund launched
- December 2007 – 7IM gains its own FSA authorisation and new institutional investors
- January 2008 – 7IM joins the London Stock Exchange
- March 2008 – 7IM launches the AAP (Asset Allocated Passives) range of funds
- October 2009 – 7IM introduces 3rd party multi manager funds into the DFM service
- October 2009 – 7IM Personal Injury Fund launched
- April 2011 – 7IM launches enhanced, ‘on-demand’ client reporting
- January 2012 – 7IM Unconstrained Fund launched
- June 2012 – 7IM launches Fixed Term Deposits
- January 2013 – 7IM launches Asset Backed Lending
- March 2013 – ‘7IMagine’ launched
- June 2013 - Assets under Management pass £5bn
- October 2013 – 7IM launches preferred SIPPs with DP Pensions Ltd and Carey Pensions UK
- October 2014 – Assets under Management pass £7bn
- January 2015 – Assets under Management pass £8bn
- March 2015 – In partnership with AXA Wealth, 7IM announces preferred Offshore Bond offering
- June 2015 – Assets under Management pass £10bn
- February 2016 – 7IM launches My Future a new feature of the 7IMagine app which allows advisers and clients to enter the details of their existing savings and pension contributions, we well as spending expectations in retirement to identify when their cash will run out.
- August 2016 – 7IM launches a Windows version of the 7IMagine App which allows 7IMagine to be used on all Windows devices including Microsoft Surface Pro, Windows phones and PC’s.