Personal Assets was able to provide investors with a safety buffer as the pandemic pulled the rug out from under the market in March last year. This was thanks to a healthy mix of American tech leaders, gold, consumer stocks such as Diageo and bonds, Mr Lane said
“That diversification and focus on capital preservation meant a much lower fall for its investors, relative to the plummeting British stock market index, the FTSE All-Share,” he added.
There may be less of a chance to shoot the lights out but that protection against losses becomes increasingly valuable as investors near retirement, he said.
RIT Capital Partners gives investors access to listed and private stocks, hedge funds, commodities, government bonds and property. It did fall initially in March last year but snapped back much more quickly than the broader market and has continued impressively since, Mr Lane said.
“The real draw here is in the full extent of the portfolio. We never can tell where the next shock will come from so having such wide diversification all in one place can be a prudent way to prepare for the unexpected,” he added.
The JP Morgan Multi-Asset Growth & Income trust could be another winner for those in their 50s, Mr Lane said. The fund is heavily invested in consumer staples and healthcare companies in America. It yields 4pc from a quarterly dividend, which will be attractive to anyone who aims to move into retirement and turn growth into income. Before retirement, the dividend can simply be reinvested in additional shares to boost growth.
Other income-producing funds include Evenlode Global Income and Threadneedle UK Equity Income. These two are “useful tools for investors in this position”, Mr Khalaf said. Again, income can be reinvested for growth if you choose the “accumulation” version of the funds.
Hitting 50 doesn’t trigger dreams of retirement for all, so those who decide not to touch their pension until they turn 65 or older still have some time to play with. A global growth fund such as Fidelity Global Special Situations or Monks investment trust will be appropriate for those in this position, he said.
“As you progress through your 50s you might consider dialling down risk in your portfolio, making use of multi-asset funds such as Personal Assets and RIT Capital Partners and reducing exposure to volatile areas such as emerging markets and smaller companies,” he added.
“Later on in your 50s you might also start to gradually build up some cash in the pension ready for the point at which you withdraw your 25pc tax-free lump sum.”
