F&C has launched a new investment fund which offers balanced mandates and multi-asset portfolios access to returns purely generated by global tactical asset allocation (GTAA) decisions.
The fund is managed by F&C's strategy team, headed up by Paul Niven, head of asset allocation. The fund has a remit to take both long and short positions in specific asset classes, including equities, fixed income and currencies. However, unlike a traditional asset allocation product where the portfolio physically buys and sells underlying assets, the fund uses derivative instruments such as futures, forward and swap contracts.
The fund is structured as a Ucits III Luxemburg registered Sicav fund with share classes denominated in three major currencies; the Euro, Sterling and the US Dollar. It has a target return of cash plus 8% pa net of charges with the cash benchmark depending on the currency of the share class selected. The charging structure on the fund includes a performance fee element.
Joint life second death option added to relieve tax burden on couples gifting assets
Backed by Schroders, LGIM and the IA
New system for funds without without three-year track record
Clients to be compensated by end of 2018
Rolled out to 25 schemes next month