Independent Financial Advisor and Co-Founder of Affari Miei
August 4, 2023
Are you looking for information on the Anima High Potential Europe fund?
If it has been proposed to you by your consultant and you are interested in learning more in order to better understand all of his characteristicshis costsi advantages they disadvantagesand above all you want to understand if it could be a suitable investment for you and your goals, then you just have to continue reading this article because today we are going to go into this investment fund in the best possible way.
Before starting with the analysis of the fund, I want to leave you there guide with which you can consult all the Anima funds to better understand what it is.
Enjoy the reading!
This article talks about:
Who is Anima SGR
If you have already consulted the guide with all the soul funds perhaps you’ve already had the opportunity to get an overview of it, but now, before delving into analyzing all the features, I would like to introduce you to the institute that offers the fund in the best possible way.
Soul SGR is under the parent company Anima Holding, listed on the Stock Exchange since 2014.
The company’s history dates back more than 35 years and it offers its investors mutual funds of all types: equity, bond, flexible, monetary, balanced and sustainable.
Furthermore, the same company does not only deal with mutual funds, but also with asset management: it consists of an efficient and personalized service of administration and capital management. Wealth management is primarily aimed at an investor who is interested in achieving objectives but who at the same time is unable or does not have the time to invest independently.
ANIMA SGR S.p.A. it is authorized in Italy by the Bank of Italy and regulated by the Bank of Italy and by Consob, so in terms of safety and protection you needn’t worry at all.
Identikit of the High Potential Europe fund
The fund in question is managed by Soul SGR and is an open-ended mutual fund under Italian law.
The fund aims to create one growth of the value of the invested capital, through dynamic and flexible management, which provides for the possibility of concentrating the investments or dividing them on the basis of the manager’s expectations.
The fund also searches for investment instruments by selecting them, trying to pursue adequate risk diversification.
The bottom is managed activelyand the manager is free to move between multiple investment assets and on the main European lists.
The manager also aims to accompany the rising phases of the equity markets, and his objective is also to defend the capital during the downward phases.
The flexible management allows for effective and dynamic allocation between the various asset classes such as shares, bonds and money market instruments.
Not sure how to invest?
Find out which investor you are. Are enough 3 minutes to discover the best strategy for you.
>> START NOW!
What does it invest in?
Now let’s see what the Anima Alto Potential Europe fund invests in.
Il bond portfolio it is oriented towards European bond financial instruments, both government and corporate. The financial instruments are mainly denominated in the currencies of European countries.
Il stock portfolio instead it is oriented towards shares of European listed companies with high growth potential. Investment in below adequate credit quality or non-credit quality bonds is limited to 30% of the fund’s net asset value, with the option to invest in derivatives for hedging, portfolio efficiency and investment purposes.
Its benchmark
The bottom Soul High Potential Europe it is a flexible fund and was launched on November 9, 1999, so it is undoubtedly a very mature fund.
The fund is actively managed and it does not refer to any benchmark.
The risk profile
The fund we are analyzing has a risk profile you seem to 4 on a scale of 1 to 7, i.e. it has a medium risk.
It is also important to know that the risk category could change over time, and in this regard I invite you to always consult the KID for further details on the synthetic risk indicator of the fund.
The fund is aimed at professional and retail investors, provided that they intend to maintain the investment for at least 5 years.
Proceeds Use Policy
The fund envisages shares of “Class A” which are ad accumulation of income.
What does it mean? It means that the coupons they are not distributed to investors on a regular basis, but instead are reinvested in the fund itself. This way you can harness the power of compound interest.
It is a method that aims to increase the growth of the investment over time.
Costs
Now we come to the very important part of the costs.
As for i cost only one we have:
Entrance costs: 4% of the invested amount;
Exit costs: no expense.
If, on the other hand, you disinvest after 1 year having made a single investment of €10,000, the entry costs can be up to €408, while the exit costs can even reach €8.
We then also have i recurring costsbroken down as follows:
Management fees: 1.72% of the investment value per year;
Transaction fees: 1.04% of the investment value per year.
For the sake of completeness of information, I am also attaching the screenshot that makes you understand what costs you will have to bear in the case of various scenarios that will arise.
I yields
After the costs we can analyze the returns of the fund to broadly understand what its result is.
Of course, past returns are in no way predictive of future returns, with which they have nothing to do.
In fact, they are not meant to be taken literally, but rather to give an overview of how the fund has performed in general.
In this case, not having a reference benchmark we can only look at the fund performance comparing it with the category performance of flexible funds.
In 2020 the fund performed better than the category index, while in 2021 the opposite is true; in 2022, however, the fund again outperformed the category index.
The composition of the portfolio
If we stop to analyze the portfolio composition we see that it is composed as follows:
Equities: 24.6%; Bonds: 55.9%; Net Liquidity: 6.1%; Other: 13.5%.
As for shares, most of them are from the UK, followed by France and Germany.
How and when to divest
At this point we have really analyzed all the characteristics of the fund in question, so we just have to deal with the last aspect, one of the most important. It’s about the divestment.
After subscribing to the fund you may find that it does not suit you, or that it is not going exactly as you expected or as it was expected.
At this point there are two paths you can take: divest immediately or bring the investment to maturity.
I advise you to think carefully before making one or the other decision, and to consider all possible alternatives.
About that, I leave you a guide where you can understand how to divest from Anima funds at a loss.
My Business Opinions
Now that we have finished our article and have seen all the characteristics of the fund, we can conclude our discussion and give an overview of the Anima High Potential Europe fund.
Most likely if you’ve come here you needed information on the fund in question, either because you’re interested in buying it or because it was proposed to you by your advisor.
And you’ve almost certainly already read this information about mutual funds.
I’m going to give you a general talk right now, so don’t take this as a focus about this fund in particular but rather as a general overview of mutual funds.
As you well know, mutual funds are a active management: there is a manager who takes care of managing the fund, choosing the instruments in which to invest and making the best decisions to achieve your investment goal.
This means that you don’t have to do anything: this can be seen as a plus if you are not interested in personally taking care of and managing your money, but it can also be a double-edged sword: since it is the taking care of everything could make decisions that are not congenial to you or it could annoy you to delegate your assets blank and not know anything about it.
Furthermore, a very thorny point of the question relates to costs: the management costs of these funds are often very high, precisely because it is necessary to remunerate those who carry out their work.
According to a Morningstar report moreover, the costs of mutual funds in Italy are very high and, often, much higher than those in other countries.
For these reasons I invite you to reflect good and long on your investment choices, before making hasty decisions that you may later regret.
Before dismissing you, I also want to tell you that in my opinion the training it is one of the cornerstones in every field of life and investments are no exception.
If you study, learn, and train yourself about the subject and the world of financial markets, you will only be able to obtain benefits and achieve your goals in a conscious manner.
In this regard, here are some useful resources:
Good continuation!
Find out which Investor You are
I have created a short questionnaire to help you understand what kind of investor you are. At the end, I will guide you towards the best contents selected according to your starting situation:
>> Start Now