Investec is launching an inflation-linked fund, targeting a return of CPI inflation plus 5%, as part of an expansion of its Managed Solutions fund range.
The Investec Diversified Growth fund, run by Philip Saunders, will aim to deliver returns well in excess of UK inflation by investing across a range of uncorrelated asset classes.
Saunders, head of the global multi-asset team, will invest across equities, commodities, currencies and alternatives, with the portfolio broken down into three baskets.
The manager and his team will allocate across growth, defensive and uncorrelated assets, with each of the three elements accounting for at least 20% of the fund.
The Diversified Growth fund will sit alongside Investec’s £2.1bn Cautious Managed fund, run by Alastair Mundy, as well as the Multi-Asset Protector and Managed Growth funds.
The four funds – which are likely to be joined by a new income mandate later this year – make up Investec’s post-RDR suite of products aimed at intermediaries and their clients.
David Aird, MD of Investec’s UK client group, said: “We believe the end investor understands an outcome better than an investment benchmark. Over any long period of time, the value of investments will be eroded by inflation, so this is a way for investors to grow assets and outpace price rises.”
The CPI plus 5% target on the fund is gross of fees, and is on a rolling three-year basis. It means at launch, with CPI at 3.6%, Investec is aiming to deliver an annual return of nearly 9%.
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