Portfolios to cover equity markets, bonds and cash accessed via four strategies
Credit Suisse is to launch a range of nine fund of funds, which can be accessed direct or via four managed strategies.
The funds, headed up by former Rothschild managers Gary Potter and Robert Burdett, include cash, sterling bond and seven regional equity vehicles. These cover UK growth, UK income, Europe, North America, Asia Pacific, Japan and emerging markets.
The funds, which are to be launched on 23 July, will each have between seven and 10 underlying holdings.
Credit Suisse's Private Portfolio Service will offer Income & Growth, Worldwide Growth, UK Growth Plus and Income strategies.The minimum initial investment is £10,000 per strategy and carries an initial charge of 4%, annual management charge of 1.5%, 3% initial IFA commission and 0.5% renewal.
Free switching between the funds is permitted. Because of the umbrella structure, investors can crystallise CGT losses should any occur in the underlying funds. Any losses crystallised can be offset against CGT gains in other investments. This is something which is unavailable to investors in a single fund of funds.
Burdett and Potter are supported by former Rothschild multi-manager team member Kelly Prior and Credit Suisse plans to expand the total team from three to five.
The Income strategy will be split broadly equally between sterling fixed interest and equity income funds. Income & Growth will have around 25% in fixed interest, 35% in UK biased towards equity income, with the remainder in global equities.
The UK Growth Plus strategy will have at least 50% in UK growth funds with the remainder in global equities. Worldwide Growth invests in a balance of global equity funds.
Asset allocation will follow Credit Suisse house-views but Potter and Burdett have a seat on the asset allocation committee. The strategies will be broadly style neutral, however, Potter and Burdett will use in-house fund analysis systems to tilt them when market conditions demand.
Potter has responsibility for UK Income, North American, Asia Pacific and emerging markets funds, while Burdett covers UK growth, sterling bond, European and Japanese funds.
Potter and Burdett's process involves a scoring system to rate aspects of a fund and its management, allowing it to be compared to other funds. They score 16 factors for each fund including team strength and financial importance of a fund to the overall fund management business.
Potter and Burdett's process involves a scoring system to rate aspects of a portfolio and its management allowing it to be compared to other funds. They score 16 factors for each including team strength and financial importance to the product provider.
Although quantitative screens are involved in the process, Burdett and Potter use them only as a guide so as not to allow statistics to rule out situations like turnaround stories or new launches.
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