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Collins Stewart’s total return fund sparks interest by multi-managers

Collins Stewart says a total return bond fund built around demand from private clients is also proving popular with multi-managers.

The total return fund that was launched last week has seen interest from multi-managers looking to build an element of stability into their portfolios, claims the fund manager.

Collins Stewart Asset Management chief investment officer Jim Goodey says fund of funds and manager of manager fund managers have shown interest in the fund because of the steady absolute returns beating cash that the fund could achieve over the mid to long term.

The fund will have a sterling currency base and is an open ended Dublin-based Ucits III fund that will be able to make use of derivatives where necessary.

Up to 50 per cent will be invested in non-sterling issues and 30 per cent in corporate bonds, depending on the deals available.

The annual management fee is 0.75 per cent plus a performance fee of 20 per cent.

Fixed-income specialist Goodey has moved back to London from Jersey to manage the fund with Mark Despres. Despres’ main responsibility will be for risk monitoring and the management of the fund, which will be capped at 100m.

Goodey says the cap is being set so the fund can remain liquid and achieve the best returns by being able to buy up well-priced corporate funds when they become available.

He says: “There has been a great deal of interest from multi-managers looking to remove some of the risk on other funds. We always thought that it would prove attractive. Our clients told us that they wanted something that would make their cash work a little bit harder for them without a great deal of risk. It is clear that that is attractive to multi-managers too.”

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