Ucits III is chance to redefine balanced managed
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Swip multi-manager head of distribution Bernard Henshall says the Ucits III rules should be an opportunity for fund managers to redefine the balanced managed sector.
Henshall: ‘Sticking to maximum’
Henshall says a number of fund managers are sticking tightly to the maximum 85 per cent equity exposure limit and are susceptible to equity-style performance. He says: “There is not necessarily anything wrong with that as performance last year showed for those funds but there are so many other asset classes to tap into and performance is bound to be affected in differing markets.”
Swip launched the multi-manager optimal multi-asset fund earlier this month. The fund aims for growth above cash, with a target of 6 per cent above three-month Libor.
Henshall says: “The fund will start with a 45 per cent exposure to equities and is not likely to go above 50 per cent. That will give us the protection from volatility and long-term performance.”
Hargreaves Lansdown senior analyst Meera Patel says: “If managers want to be cautious with regard to equity exposure, the cautious managed sector is there for them. The balanced managed sector is all about geographical exposure and taking advantage of areas which look attractive.”
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