Worldwide flexible fund · Mauritius
RECM Worldwide Flexible Fund
A stay-rich vehicle, not a get-rich one. The fund’s primary purpose is to protect capital in real, inflation-adjusted terms, evenly spread across cash, bonds, equity and commodities, and tilted, never tipped, towards what is undervalued.
The problem it solves
Once you have made enough money, there comes a point at which the job changes: you need to protect your wealth, or at least a portion of it. In other words, to maintain its purchasing power.
Everyone’s interpretation of “enough” is different. But for the genuinely wealthy there will at some point be a portion of wealth that needs protecting, for peace of mind, to preserve spending power, or to pass on to the next generation.
The primary purpose of the fund’s strategy is therefore to protect capital in real terms. This is a stay-rich vehicle, not a get-rich vehicle.
The three risks it manages
Inflation
Preserving the real value of the capital invested, in hard currency terms.
Permanent loss
Avoiding any permanent loss of capital, the one kind of drawdown that cannot be waited out.
Liquidity
Holding assets that can be sold when they need to be, not only when it is convenient.
How we do it
Four asset classes, held at all times, in roughly equal measure.
Cash
Optionality and defence, but managed carefully, because cash has historically lagged inflation.
Bonds
Contractual income, without reaching for yield to manufacture it.
Equity
The growth assets: real businesses bought at prices that embed low expectations.
Commodities
Hard, real assets that behave differently from paper when paper misbehaves.
The fund is fairly evenly invested in all four asset classes at all times. Its assets always offer some protection against certain events and produce gains from others. Exposure is tilted towards undervalued assets, those with embedded low expectations, but never in an extreme fashion.
Principles behind the process
We will not forecast.
We will not reach for yield.
We aim to generate satisfactory returns.
The price you pay is the most important source of return, and the only one entirely under our control.
What unitholders can expect
How the targeted return is built, asset class by asset class.
| Asset class | Past 20 years, real | Long-term expectation, real | Weight |
|---|---|---|---|
| Cash | 1,2% below inflation: careful management is required simply to keep pace | In line with inflation | 25% |
| Bonds | Yields averaged 0,8% above inflation | About 1% above inflation | 25% |
| Equity | n/a | 4 to 6% real; we work with 4% | 25% |
| Commodities | Gold 8,6% (5% real); oil 5,8% (3,2% real) | We work with 3% real | 25% |
The targeted investment return, arrived at by allocating 25% to each asset class
The fund is built to be robust in whatever economic environment prevails, without trying to forecast what that environment will look like. The profile of returns will be less volatile than pure equity, with a lower expected return to match, but in excess of inflation over the medium to long term.
Who it suits
Investors who have made enough and whose priority is now to keep it: protecting a portion of their wealth in real, hard-currency terms, for peace of mind, to preserve spending power, or to pass on to the next generation. It suits a medium- to long-term horizon and those who prefer a smoother path than pure equity, accepting a lower expected return in exchange.
The fund is domiciled in Mauritius. For fund terms, fees and how to invest, speak to us directly.
The RECM Worldwide Flexible Fund is domiciled in Mauritius. This page is a summary for information only and is not an offer, a solicitation or advice. Targeted returns and the historical asset class returns shown are illustrative building blocks, not forecasts or guarantees. Past performance is not a guide to future returns. Full details are in the fund’s minimum disclosure document.