The fund seeks to “produce long-term capital growth and intends to capture some of the stock market’s gain while also offering some shelter during stock market falls” by targeting a combination of equities, bonds and commodities.
The focus will be on a long-term strategic positioning rather than shorter-term tactical asset allocation.
The initial asset allocation will be 35% equities, 44% bonds, 16% cash, 4% commodities and 2% in other assets. The geographic allocation of the equities element will be 59% UK, 14% EU, 12% US, 10% Asia Pacific and 5% Japan.
The offer period for the new fund starts today, 26 January and a £1 fixed piece launch is set for 9th February. The estimated ongoing charges figure is 1.45% per annum, with no initial charge through the HL Vantage platform. HL Vantage has its own charge of up to 0.45%.
“There is a sizeable market for a fund intended to capture some of the stock market’s gain but also offer some shelter during stock market falls,” said Lee Gardhouse, investment director and fund manager. “This is a rare kind of multi-manager fund; a strategic assets fund, aiming to blend together a group of proven asset allocators into a single portfolio.”
“The focus will be on a long-term ‘strategic’ position rather than shorter-term ‘tactical’ asset allocation, where the manager hopes to call short-term changes in markets,” he added. “The aim is very much to try to ‘win the war’ rather than worry too heavily about what the next battle might bring.”
