We invite you to watch our latest video featuring Zurich Investments senior investment strategist Patrick Noble.
The question of how to generate a satisfactory return to meet investors' needs is becoming tougher and tougher as the world faces a new normal of lower economic growth and lower interest rates.
The right allocation to growth assets will be an important part of the answer. The Zurich Investments Concentrated Global Growth fund, managed by American Century, proposes a high conviction solution.
Noble says the strategy differentiates itself to other global growth funds by focusing on the direction of growth in a company's earnings rather than the absolute growth level. The strategy focuses on inflection points to identify a sustainable improvement in the growth cycle of a company that has not yet been recognised by the wider market.
"We want to have an exploitable earnings gap or something that is exploitable relative to market consensus. Then, as with other investments, you want to make sure that you have a reasonable valuation given the risk-reward trade off of each opportunity," Noble says.
The video and accompanying article will be particularly relevant to advisers with clients that structural, long-term exposure to a portfolio of between 30 and 50 shares that is constructed away from sector benchmarks.