Has mentioned in the launching of our first contract as advisors, the SICAV - Optimize Invest Selection is a balanced fund portfolio oriented for long-term savings composed of equity funds and bond funds. It is exposed to shares from the Eurozone countries; Switzerland; Sweden; United Kingdom; Russia; Japan; South Korea and Canada.
The Fund bears to European High Yield, US Dollar, American High Yield, Norwegian Krone, Swedish Krona and Japanese Yen in the bond component.
Perspectives
The aggressive monetary policy of the central bank brought the country out of a cycle of recurrent recessions.
However, despite the measures to mitigate the pandemic's effects, the coronavirus's impact has penalized the economy and GDP declined by 5.1% in 2020.
It is true that the economy has an internal demand problem due to demographic decline and depends on international trade. Historically, this dependence has been a weakness. Still, probably in 2021, it could be its main engine of growth due to the economic capacity of its major trading partners US and China.
On the supply side, Japanese companies are well-positioned in an emerging and rapidly growing Asia. In terms of quality, technology and productivity are among the best in the world.
The Japanese central bank will keep in full speed mode and continue its ultra-accommodative monetary policy. The Japanese government has a stimulus package that could reach more than 20% of GDP. These almost infinite stimuli and structural reforms will enable Japan's growth to be sustainable.
Strategic allocation
Japanese assets benefit from the diversification effect and refuge value of the yen. This currency remains undervalued against the euro, which makes it an attractive market.
We allocated 5% of the portfolio in shares and 10% in bonds through investment funds and ETFs.
Definitions:
Mutual fund – A mutual fund is a professionally managed financial product – investment fund - that gathers money from many investors to buy securities: bonds, share or both.
The advantage of this product compared to direct investment - direct purchase of shares or bonds - is that by joining many investors, the amounts available to invest considerably increase, which reduces costs and diversifies the investment (a more significant number of securities purchased).
This option is the most recommended for those who do not have much money (tens of euros are enough to invest), time to monitor the investment very regularly on a daily basis (there are fund managers who do this for you) and who have little knowledge of the financial markets.
ETFs - An exchange-traded fund is an investment fund traded on the Stock Exchange as if it were a stock. An ETF can also be called an index fund.
Most ETFs track an index, such as a stock index or bond index