Investec Asset Management is to forge closer ties with life companies in a bid to sell its Cautious ...
Investec Asset Management is to forge closer ties with life companies in a bid to sell its Cautious Managed fund into the with-profits space.
David Aird, joint managing director of Investec, said: 'The Sandler Review heralded the end of with-profits as a viable investment vehicle.'
He added that although it was only a review, Sandler's focus on transparency would reduce the opaque with-profits vehicle to a standard mutual fund.
Moreover, with the negative correlation between corporate bonds and equities becoming more pronounced over the past five years, cautious managed funds would be able to provide smoothing of returns with transparency.
The Cautious Managed fund from Investec is ranked third over the three years to 8 July, according to Standard & Poor's, with a negative return of just 3% on an offer-to-bid basis compared to a sector average loss of 8.4%.
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