The fund was created by converting the group’s multi-manager incubator fund into a multi-asset fund. This change saw the fund move into the IMA Balanced Managed Sector from the Active Managed sector.
Co-heads of multi-manager Graham Duce and Aidan Kearney will manage the fund. Duce joined Credit Suisse in 2002 from Towry Law, where he was managing director.
Kearney joined Credit Suisse in April 2007 from Premier Asset Management where he was senior investment manager of pooled funds. He has over 21 years of investment experience, having run portfolios for Artemis, ABN Amro, Singer & Friedlander, and Allied Irish Investment Managers.
The new fund takes a similar approach to the multi-manager multi-asset distribution fund but focuses on growth rather than income and growth. It invests globally in a range of asset classes through a portfolio of investment funds. It will have more investments to choose from relative to the distribution fund because it has no income or dividend requirements.
The fund was launched with an initial 50 per cent weighting to equities and fixed interest, 30 per cent to alternative asset classes and 20 per cent to shorter term tactical opportunities. If shorter term tactical opportunities are not available, the fund will invest in cash.
Duce and Kearney will build a portfolio of funds investing in equities, fixed interest securities, property, structured products, private equity and listed hedge funds.
The case for multi-asset investing stems from recognition that asset classes behave differently and returns will vary during the market cycle. By spreading investments across a range of asset classes, the idea is that there should always be something in the portfolio to keep it ticking over, even as market conditions change.
Combining this with a global multi-manager approach means that not only will the fund be diversified across asset classes, it will also be diversified across manager, region and industrial sector. The portfolio will be monitored to ensure it remains invested in what the managers regard as the best blend of funds.
The fund fills a gap in Credit Suisse’s fund range but may not stand out from the raft of multi-manager multi-asset funds already available as much as its distribution fund.