By Eugene Goosen, Portfolio Manager
In a world where the rules of diversification no longer hold the way they used to, how should fund managers think about risk?
In his latest update, TBI Portfolio Manager, Eugene Goosen offers a perspective that’s not just relevant — it’s urgent. While many portfolios still follow old assumptions about asset behaviour and correlation, Eugene makes the case for a more adaptive, objective-led approach.
🎥 Watch the full video here
Risk Has Changed. So Has Our Thinking.
In the past, investors relied on certain patterns. Equities and bonds would behave in broadly opposite ways, offering built-in cushioning during market swings. But as Eugene notes, “those rules don’t apply anymore.” Today’s risk environment is shaped by forces like geopolitics, global supply chain shifts, and interest rate cycles that move differently to historical patterns.
In the video, he unpacks how risk is now evaluated — not in isolation, but through the lens of portfolio construction, correlation stress-testing, and alignment with the fund’s ultimate goal: capital stability with risk-adjusted return.
From Theory to Practice: What This Means for SCI Diversified
The SCI Diversified Income Fund of Funds (SCI Diversified) reflects this thinking in action. It’s built to weather uncertainty — with selective exposure, diversified local and global components, and liquidity across all underlying funds.
What’s new is the added simplicity of accessing offshore income through the inward-listed, dividend-paying share class of the TBI Global Multi-Asset Income Fund. This subtle structural enhancement doesn’t increase risk — it reduces friction and aligns more closely with how corporates measure efficiency.
Eugene touches on this indirectly in the video: when the return profile of a fund is built from assets that “gel together,” the result is a more intentional, more robust income engine. That’s exactly what SCI Diversified is designed to do — and why its internal asset mix continues to evolve.
Our Risk Rule: Allocate Where It’s Worth It
The second half of Eugene’s video is especially relevant for advisors: he breaks down TBI’s simple, long-held investment principle. Allocate only where there’s a high probability of positive return. If that condition isn’t met, stand back — and accept the carry from lower-risk, liquid instruments.
“We are not risk chasers,” he says. “We only allocate where it’s appropriate.”
This approach has underpinned the consistent performance of SCI Diversified, including its zero monthly drawdowns since inception and fully liquid structure, typically realisable within days.
Why This Matters for Corporates Right Now
In the current climate — where asset behaviour is more uncertain, elections are reshaping sentiment, and cash must work harder — this isn’t just a theoretical view of risk. It’s an investment discipline that keeps performance on track without overreaching.
If you’re advising clients with discretionary mandates, or managing corporate liquidity yourself, it’s worth re-examining your income fund allocations in light of this philosophy.
