Common sense is a key component when it comes to Kames Capital's multi-asset fixed income fund, manager Jacob Vijverberg has told Citywire Switzerland.
Vijverberg said he does not keep a close eye on a benchmark when managing the Kames Global Diversified Income fund. Instead, he prefers to allocate based on a mix of research and common sense.
'This fund approaches topics from a common sense standpoint, not a benchmark bias. It does not invest in any securities that have a benchmark bias,' he said.
Vijverberg explained that he uses common sense to allocate towards obvious trends – for example, the rapidly rising middle class in China.
'A lot of short-term developments are hard to forecast, but there are clear longer-term trends. In China, the increase in the middle class is enormous. If you own staples exposed to China, that's a big benefit,' he said.
Currently, 10.4% of the fund is allocated to emerging markets, with 5.7% in bonds and 4% in equities.
Vijverberg also pointed to online shopping as a driver of growth for chip manufacturers. The fund's largest global equity income holding is chip manufacturer Taiwan Semiconductor at 1.6%.
'Online shopping is a big trend, so it's about investing in logistical warehouses. There has been a huge growth in data centres and therefore a lot of demand for different kinds of chips,' he said.
Vijverberg said he sees several opportunities going into 2019, particularly in IT, healthcare and Asian markets.