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Apollo balances fund with multi-asset exposure

Apollo Multi-Asset Management’s balanced fund was up by 1.75 per cent at the end of October, 0.9 per cent behind the IMA balanced sector average with half the equ-ity exposure of the sector.

At October 31, Apollo balanced had almost 38 per cent in equities, which is low relative to the 78.3 per cent sector average and the 85 per cent maximum equity exposure allowed by the IMA.

The company says its multi-asset approach enabled it to participate in the equity rally last month and it has continued to diversify the balanced fund with two new holdings.

A structured product has been added that is linked to a basket of soft agricultural commodities through a SocGen commodities index. This provides 235 per cent participation in the index so that for every 1 per cent rise in the index up to 50 per cent, the product returns 2.35 per cent.

The Ucits III-compliant GLG atlas macro alternative fund is another new addition to the Apollo fund. This invests globally across all asset classes, including equities, indices, currencies and fixed income using a thematic approach.

Fund manager Tom McGrath says: “The GLG fund is a go anywhere, do anything type of fund focused on the managers’ best ideas. They can take big bets and have some interesting ideas. They think the Hong Kong dollar being pegged to the US will go, so they have a tiny bit of option premium in the portfolio in case that happens.

“They also think French bonds could blow out against German bonds and if this was to happen, they would get a phenomenal return as it is not priced in by the market. These are some of their more extreme ideas but they also have more conventional ones such as going long in Asian currencies as they think these are going to strengthen.”

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