The IM Octopus Global Strategies Fund is a Ucits III fund of funds investing in alternative strategies such as managed futures, long/short equity funds, thematic funds and counterbalance holdings. It aims to provide equity-like returns without being highly correlated to equity and corporate bond markets, to provide positive returns over any 12-month period.
According to Lothar Mentel, chief investment officer and head of multi-manager, 25% of the proposition will invest in what he described as asset selection funds (managed futures, global macro, global tactical asset allocation); 50% in stock selection funds (long/short, currencies, equities and so on) that will be as close to market neutral as possible; 10% will be in theme selection (into whatever themes are relevant t the time); 15% in risk control or opportunistic return strategies.
The portfolio is designed to have low correlation to equities and the risk control strategy will be used to counter any bias towards equities.
It will sit in the IMA’s Absolute Return category, complementary to its existing Alternative Strategies fund that is a low risk/low return strategy. The new proposition will invest in more risk assets though will still to deliver a positive return over a rolling 12 month period.
The IM Octopus Emerging Market Equity Fund will invest in funds that have either direct or indirect exposure to emerging markets. It follows a medium/long-term investment strategy and will target a higher return than is available in developed markets.
The allocation at launch will be50% into global emerging markets (where the individual fund managers will do the asset allocation mix); 30% into emerging Asia; 10% in Latin America; 10% into emerging Europe, Middle East and Africa.
Bish Limbu will run the funds and they are scheduled for launch on 7 November, running alongside the existing Foundation Funds within Octopus Portfolio Manager which are fixed income, alternative strategies, UK equity, and international equities.
Mentel added: “The Global Strategies portfolio will help us to achieve uncorrelated returns when equities are performing poorly, and the Emerging Market Equity portfolio will allow us to pinpoint growth allocations more effectively across the portfolio spectrum, than the inclusion in the International fund has allowed us in the past.”
