The strategy will now target CPI +3 to 5%, rather than CPI 5%, and will continue to aim for volatility of two-thirds of the MSCI World Index.
The move comes as investors adopt increasingly short-term views on asset classes and fund returns, and the new benchmark is deemed to be a more realistic target within the fund’s parameters.
The fund is managed by David Coombs and Elizabeth Savage, and currently has around £62m under management.
It has been a third quartile performer over both one and three years. Its performance over the past year is shown in the graph.
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Top ten holdings at present include Schroder UK Growth, Brown Advisory American and Legg Mason Clearbridge US Aggregate Growth.
Mike Webb, CEO, Rathbone Unit Trust Management, said: “Our research shows that we would have to take significantly more equity-like risk per unit of return. This is not the reason why our investors have bought the fund, and it is our responsibility to preserve their risk objectives.
“As a risk-targeted strategy, as opposed to a risk-rated one, we can afford the flexibility on the return target to maintain our commitment to our risk parameters. We believe the range for our return target is both realistic and responsible within our risk budget. We can expect the upper end of the range to be achievable once we start seeing signs of interest rate normalisation.”
Earlier this week Rathbone announced a 10% increase in profits for the first quarter of the year, and that funds under management had reached
