David Jane is preparing to roll out the first offering from his new boutique, Darwin Investment Managers, and is making plans for a second absolute-return focused product later this year.
The TM Darwin Multi Asset fund will open its offer period at the start of May, with the official launch date slated for the end of the month.
The second fund will be a total return multi-asset fund, which is expected to come to the market in September.
Darwin Multi Asset will be modelled on the M&G Cautious Multi Asset fund Jane launched when he was head of equity investments at the group.
“It will be very like the old fund I ran at M&G because I designed it,” Jane says.
“My stock selection process is the same. I identify attractive positive long-term themes and find stocks that fit those.”
Jane says themes in the fund will include climate change, the new energy economy and global political instability.
He adds: “I have the great advantage of not being measured against any benchmark. I can just pick stocks from a global universe that work long term, remembering any equity I buy adds volatility, which ultimately is going to be the biggest source of risk to the fund. Each stock needs to earn its keep, not just add beta.”
Around half the equity in the portfolio will be in the UK and the remainder in Europe and Japan but it will launch with relatively low exposure to emerging markets, Jane says.
About 50% of the fund will be in equities, 30% in non-European medium-dated government bonds, including emerging markets, and the remainder in commodities including gold, energy, and agricultural. Fixed income holdings will include Norwegian and Singaporean government bonds.
The fund will have the ability to invest in a range of asset including currencies, property and ETFs.
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