The firm prides itself on managing client money through a series of fund of funds on a very granular level, with Dan Kemp, a partner at the firm, explaining: “The more granular they are, the easier they are to run.”
This new fund of funds is a long only proposition, with Kemp adding that Saltus already runs an offshore global equity fund of funds that is a combination of long only and long/short funds. The new onshore offering will be long only, run on a team basis, with most of the trading done by Kemp.
It will invest across actively managed as well as exchange-traded funds and while it is essentially long only, it does have the potential to use derivatives.
Part of the rationale for the move, according to Kemp, is to strengthen the proposition it can offer those intermediaries who are looking to outsource their investment process thanks to proposals included in RDR as well as the rising cost of regulation pushing IFAs towards wrap propositions.
“The beauty of this,” he says, “is it works on wrap platforms as – to give them their due Octopus does it as well – not everyone else delivers discretionary portfolios on a wrap platform.”
With this in mind, Kemp also confirmed that Saltus is looking to bring the minimum value of assets to be invested by a client as close to zero as is practicable, down from the current minimum of £50,000.
