An investment manager is adding low risk equity investments to its fixed income investment accounts.

Anchor Investment Management said yesterday it had broadened its segregated managed account offering for both US dollar and multi-currency portfolios to include some stock exposure.

"Many of our fixed income clients have requested to add some stock exposure to their portfolios but do not want to significantly add volatility," managing director of Anchor Investment Management, Jeffrey Brewer said in a press release.

"They also want to have a low fee structure. At Anchor we have always used diversification to enhance returns and lower volatility.,"he said.

"We believe that these Low Risk Portfolios should have higher risk adjusted returns than fixed income only or equity only approaches."

The new low risk strategies are designed for clients who primarily want to be invested in fixed income securities but also want to have some exposure to Anchor's quantitative equity approach, the company said.

"More conservative balanced portfolios have historically shown lower volatility than more aggressive portfolios but also give clients potential capital appreciation from the stock market," the statement said. "The investment management fee for these accounts is lower than traditional balanced and equity only accounts."

"Anchor introduced multi-currency managed accounts three years ago when it correctly predicted that the US dollar would decline in value due to the bulging US Federal Budget and Current Account Deficits combined with low US interest rates," Mr. Brewer said.

"Fortunately, we are given a unique view of the world from Bermuda and based on economic fundamentals it has not been difficult to convince our clients to use a multi-currency approach to investing.

"Until the US tackles the growing twin deficits, the dollar is vulnerable. This has major ramifications for our investors.

"Therefore the decision to invest in non-dollar securities is prudent and has rewarded Anchor's clients with much higher returns than strategies that have been limited to US dollars only."