Hamilton Permanent Portfolio
One of the basic things that many investors get wrong is not properly diversifying their investment portfolio. This lack of diversification can lead to poor performance, particularly when financial markets are changing rapidly.
To be properly diversified for different economic climates (increasing economic growth, decreasing economic growth, increasing inflation and deflation), it is important that your portfolio contain a mixture of different asset classes that perform differently in each economic climate.
The Hamilton Investment Fund — Permanent Portfolio (APIR: HLN0003AU) provides access to a diversified portfolio of investments across different asset classes in a single managed fund, giving investors a simple, transparent method to effectively acquire a diversified investment portfolio.
What asset classes?
|Asset Class||Class Weighting|
|Cash and cash equivalents||
|Gold and Silver||
Why these asset classes?
Cash and cash equivalents
These assets are liquid, that is, the money can be accessed more easily. During periods of decreasing economic growth investors tend to sell assets and hold cash due to its accessibility, so demand for cash tends to increase during these periods.
As the risk of inflation decreases, or in times of deflation, interest rates usually fall, so the price of bonds and other fixed interest investment tends to increase.
During periods of economic growth companies tend to increase earnings which helps them to fund expansion more easily. So the price of equities tends to rise during these periods.
These hard assets are recognised as stores of value. When inflationary expectations are rising or in times of political and/or economic uncertainty the prices of these assets tend to rise.
Advantages of the Permanent Portfolio
Diversified all-seasons portfolio
Invests across diverse asset classes designed to perform differently in different economic climates, such as periods of economic growth, recession, inflation and deflation.
Maintains a disciplined target asset allocation
The Permanent Portfolio maintains a disciplined approach to its asset allocation which it rebalances regularly to ensure that it remains within the target asset allocations.
Designed to preserve and grow wealth
The Permanent Portfolio is designed to hold assets with the view of preserving wealth and increasing the value of investments over time regardless of the economic situation.
Access to a range of asset classes within one investment
The benefit of a diversified portfolio with one investment in the Permanent Portfolio.
The potential for compounding returns over a period of time coupled with a regular savings plan can significantly improve final value.
Money for living
The money for living option allows you to select a regular monthly amount to be paid to your bank, building society or credit union account.