The latest interviewee in our Octo Selectors Series, James Calder, talks us through his outcomes-based approach to multi-asset, where he’s investing, and how he generates income.
City Asset Management’s research director explains how most of his clients would have already made most of their wealth, and so a key part of his job is to avoid taking big risks.
“We are pretty much in the ‘don’t mess it up’ camp, so capital preservation and being clear on the worst-case outcome is important,” he says.
“We are growing returns for clients in line with inflation plus a number that’s reflective of their attitude towards risk.”
James also talks about his use of closed-ended funds as a structure that lends itself well to retail investors accessing illiquid asset classes, such as property.
“For infrastructure, you can’t go and buy or sell a bridge overnight, whereas you can go and sell as much BP or Shell shares as you want on the London Stock Exchange,” he explains.
“They work well for asset classes that we would like to have in our clients’ portfolios but the underlying manager doesn’t have to worry about the underlying liquidity profile of his or her portfolio.”
James talks more in-depth about his portfolios, and why his asset class views would be impossible to replicate through passives, in our profile interview.
25 June 2019
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