7/1/2021 12:00:00 AM

How can you reduce your investment risk?


Many investors don’t understand risk until it’s too late. CEO & Founder Mike Taylor explains diversification and why you don’t want your investments to leave you feeling anxious.

There is a saying that if you are going to put all your eggs in one basket, you need to be sure to watch that basket. But most of us don’t have the time to watch the basket 24/7 –  the requisite skill required to spot threats to our basket. 

The main example we come across at Pie is where investors have all their money in just one of our funds. I see this all the time, and I have witnessed over the last decade Pie investors become stressed out if the fund they are in underperforms for a period. This is incredibly frustrating to watch, because a simple solution is to diversify across our product range.

Diversification should be across asset classes (property, shares etc), across regions (NZ to Europe etc, and no, Australia doesn’t count!), and across sectors (IT to travel etc). Pie has a range of funds that can help diversify your portfolio because our funds focus on different regions, and we have funds that invest in some different asset classes. 

Pie’s Global Growth 2 Fund is our only large cap fund, aiming for long-term capital growth by investing in global market leaders. Diversifying your money and investments across a wide range of markets, asset classes and risk levels can help reduce the risk that can come with investing.

View Global Growth 2 Fund

Pie’s Global Growth 2 Fund features:

+ Invest in global market leaders
Large global companies like Amazon and Apple have stable, leading competitive market positions and provide steady long-term growth opportunities. 

+ Diversify through Pie’s only large companies fund
Diversify your portfolio with exposure to companies valued at US$1 billion or more, hand-picked by the Pie investment team.

+ Long-term capital growth
Pie’s Global Growth 2 Fund aims to deliver long-term capital growth. Diversify your portfolio through exposure to market leaders, quality companies and sectors. 

+ A well-connected research team in London
Our specialist equities researchers are well connected in the UK, Europe and further afield. Their ear to the ground and strength in detailed analysis helps identify strong investment opportunities.

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Information is current as at July 2021. Pie Funds Management Limited is the manager of the funds in the Pie Funds Management Scheme. Any advice is given by Pie Funds Management Limited and is general only. Our advice relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees, like brokerage, if you act on any advice. As manager of the Pie Funds Management Scheme investment funds, we receive fees determined by your balance and we benefit financially if you invest in our products. We manage this conflict of interest via an internal compliance framework designed to help us meet our duties to you. For information about how we can help you, our duties and complaint process and how disputes can be resolved, or to see our product disclosure statement, please visit www.piefunds.co.nz. Please let us know if you would like a hard copy of this disclosure information. Past performance is not a guarantee of future returns. Returns can be negative as well as positive and returns over different periods may vary.