Blacksquare has made several changes to its Acumen defensive portfolio, formerly the IFSL Blacksquare multi-manager absolute return fund, to produce higher returns with volatility closer to its maximum target of 4 per cent a year.
The portfolio, which is up about 0.55 per cent in the year to date, had recently been trading with volatility of about 3 per cent. This was to preserve capital but Blacksquare felt there was scope to increase this to enhance returns.
It has sold out of long/short equity fund FCM European opportunities, foreign exchange fund Neuberger Berman diversified and systematic fund Fulcrum alternative beta plus. Three long/short equity funds – CF Odey UK absolute return, Investec enhanced natural resources and Old Mutual global equity absolute return – were added to the portfolio alongside a long/short credit fund, Absolute Insight credit. The new additions are not new to Blacksquare, having been held in the IFSL Blacksquare multi-manager diversified fund.
Blacksquare chief executive Christopher Peel says: ” We have been impressed with these managers during their time in the diversified fund and believe they will improve the risk/return profile of the portfolio.”
The IFL Blacksquare multi-manager diversified fund is now closed to new investment as multi-manager is repositioning its product range.