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.
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