Credit Suisse Asset Management is heading for the stars with the introduction of the multi-manager constellation portfolio fund of funds.
Constellation is a unit trust and will be the first product run by newly arrived fund managers Gary Potter, Robert Burdett and Kelly Prior. The trio used to manage the five arrows private portfolio series of funds for Rothschild Asset Management until April 2001, when they were recruited by Credit Suisse to head up a new series of fund of funds. The fund is also Credit Suisse's first unit trust fund of funds.
Constellation is one of three funds of funds that Credit Suisse will launch this summer, the others being the multi-manager balanced strategic portfolio and the multi-manager UK strategic growth portfolio.
It will invest in a portfolio of between 20 to 35 funds run by Credit Suisse and external fund managers. Those fund managers being considered are Polar Capital, Liontrust, Odey Asset Management, Thames River, Findlay Park and ABN. Credit Suisse will cherry-pick what they regard are the best funds available, from a wide spread of investment areas, geographical regions and risk levels. All of the initial spread of funds will be actively managed.
The UK is currently in the grip of a bear market. As a result, any fund of funds will have to pick and choose very carefully. One advantage to a fund of funds is that it is easy to add and remove funds. However the funds chosen must be considered carefully as the market is currently extremely volatile.