You make money by putting your eggs in one basket. But you keep your wealth by spreading it out.
Advice Capital Vision Fund strategy is selecting structural growth companies towards 2035, while applying a prudent risk/return method using GARP. The key objective is capital growth and obtained through capital accumulation in companies with structural growth, good stewardship and best possible position to create returns that are above general stock market return levels.
The mandate is based in decades of investment experience by board member Ole Søeberg, who also functions as asset manager for the fund.
Global economic growth is most likely to be modest in the coming decades as population and productivity combined growth is 2% in developed regions. In 2021 inflation has ticked up due to disruption of ‘just in time’ supply chains. Capital is not in short supply and capital almost automatically gets directed to where the best returns are. The current pricing situation have create over normal profitability levels and new capital will sooner or later move towards these areas and build more capacity and hence normalize the profitability levels again. Hence, in the long term perspective inflation will remain moderate.
Returns from risk-free assets such as government bonds and cash deposits are below inflation rates, which gradually will reduce the purchasing power of your savings in the longer term.
In an investment environment with no risk-free returns, one has to move out the risk curve to achieve any kind of positive returns in the longer run. Stock market investors have over the past 30-40 years become accustomed to annual returns of 8%, however given the economic pace and modest inflation the coming decades are more likely to generate returns at the 5% level.
Advice Capital Vision Fund is designed to fit the part of our savings where you have capital growth and at least 5 years investment horizon.