SVM Asset Management has announced the launch of two multi-asset funds of funds, SVM Cautious Managed and Balanced Managed, on 15 May.
The bulk of the portfolios will be invested in a diversified international mix of specialist funds, including private equity, property and hedge funds, in order to exploit opportunities for long-term growth. This is similar to the investment strategy of the SVM Global Opportunities fund, whose managers, Colin McLean and Donald Robertson, will also run the new funds.
To mitigate risk both funds will have exposure to an actively managed portfolio of cash and bonds. The Cautious fund will have a 40% weighting to cash and bonds, with the Balanced fund investing 15% in these less risky assets.
SVM’s fund of funds approach is to look for proven managers with a pragmatic approach who are based in the locality in which they invest. SVM selects managers who are incentivised for absolute performance with no constraints, and who hold stakes in their own fund. McLean and Robertson target a combination of growth and defensive funds in order to generate smoother returns in both rising and falling markets.
Commenting on the launch, Robertson said: “Our truly multi-asset approach, which includes alternative investments, gives us the ability to generate returns which are not reliant on the market growth. With market volatility set to continue for the foreseeable future, we believe this is the best way to protect clients’ returns.”
The funds will be available with retail and institutional share classes, with a launch offer of 5.25% commission.
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