Aim: Income and growth by investing globally in equities, fixed-interest securities and alternative asset classes through investment funds
Minimum investment: Lump sum £1,000, monthly £100
Investment split: 28% fixed interest, 21% UK equity income, 16% protected equity, 12% property, 12% overseas equity, 5% listed hedge funds, 5% thematic, 1% cash
Isa link: Yes
Pep transfers: Yes
Charges: Initial 4%, annual 1.5%
Special offer: Initial charge waived
Offer period: Until December 31, 2007
Commission: Initial 3%, renewal 0.5%
Tel: 020 7426 2929
This is a multi-manager multi-asset fund investing across a range of asset classes.
Looking at what this fund brings to the market, Professional Partnerships principal Gillian Cardy says: “At times of market volatility, a fund offering steady growth with the possibility of income should be a winner. Exposure to equity income and fixed interest as well as other more flavour of the month asset classes such as structured products – rarely held in collectives in such a visible way – hedge funds and derivatives should meet a need. “
Cardy regards the charges as normal for collective investments. She thinks this may make the product more competitive in terms of charges than other funds, which tend to use the absolute return objective as a reason for imposing higher than usual charges.
“It may be relevant to many advisers to know what platforms will make the fund available as I can see IFAs wanting to use this as a diversifier in a portfolio rather than a total solution type of fund,” she says.
Turning to the potential drawbacks of the fund, Cardy says: “It’s not clear to me what credentials the managers have for running this type of fund with these types of asset classes. We may be familiar with Aidan Kearney but I would be surprised of many advisers have heard of Graham Duce, who appears to be presented as the lead manager. We may be looking for more reassurance about his track record and abilities in this arena.”
Cardy believes the main competition will come from the Insight diversified target return fund and HSBC OpenFunds.
Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Average