The recent weakness in global markets is a timely reminder of how important it is to invest with a long-term mindset. We highlight key investment takeaways using our Trends as examples to help you invest with confidence. (2:24 min read)

This information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs.

 

We’ve previously written about how sometimes you need to lose money to make money.

Sounds completely counter-intuitive, doesn’t it? In actual fact, it isn’t. It’s all a question of how long you should be invested for.

The recent weakness in global markets is a timely reminder of how important it is to invest with a long-term mindset.

Let’s put this into context with three of our managed funds (which we call Trends), which are all about to turn 3.

Take a look at how each Trend has performed over this period for an excellent lesson in volatility.

 

Big Data Big Fund

Investment returns are not guaranteed. Past performance is not a reliable indicator of future performance. Refer to full important notice below.

 

Out of the 35 months since the fund launched, it has experienced 24 months of positive returns and 11 of negative returns.

Despite 11 months of negative returns, the Trend has delivered +46.81% (or +14.20% per year) for investors since launch to 30 September 2018.

 

Online Shopping Spree Fund

Investment returns are not guaranteed. Past performance is not a reliable indicator of future performance. Refer to full important notice below.

 

Out of the 35 months since the fund launched, it has experienced 25 months of positive returns and 10 of negative returns.

Despite 10 months of negative returns, the Trend has delivered +42.95% (or +13.16% per year) for investors since launch to 30 September 2018.

 

Splurging Baby Boomers Fund

Investment returns are not guaranteed. Past performance is not a reliable indicator of future performance. Refer to full important notice below.

 

Out of the 35 months since the fund launched, it has experienced 23 months of positive returns and 12 of negative returns.

Despite 12 months of negative returns, the Trend has delivered +13.95% (or +4.62% per year) for investors since launch to 30 September 2018.

 

What does a smart investor do when things go south?

• Maintain their long-term investing mindset – the sharemarket can be volatile, it’s important to look through the noise and focus on the long-term growth prospects of a given company.
• Seize the buying opportunity – instead of just selling out, the best fund managers often look for dips in the market for buying opportunities when valuations of good stocks become more attractive.
• Avoid market timing – the sharemarket is impacted by many factors (political, economic etc.) so movements in the market can be unpredictable and swing quickly. Rather than trying to time the market, the best fund managers invest consistently and over the long term this can help ride out the volatility.

 

How we’re investing for the long-term

At AtlasTrend, we’ve selected our Trends based on long-term structural themes impacting billions of lives around the world, which are likely to grow with near certainty over the next 10+ years – through good and bad (economic) times.

The stocks making up the Trends are hand-picked by our investment team. They’ve got a universe of ~5,000 companies to choose from, all listed on stock exchanges in developed markets with over US$1 billion market capitalisation.

The large size of the stocks helps make it liquid, meaning we can easily buy and sell at an opportune timing to seek to maximise returns for investors.

While the stocks are selected with a long-term investment horizon, we actively manage the portfolios; viewing weaker markets as prime opportunities for selective buying – assuming underlying fundamentals around the growth prospects of the stocks haven’t changed.

 

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