Donaldson says: “This fund aims to achieve a return of 3 per cent above the base rate a year on a medium to long-term basis, with capital preservation being a major consideration. It is a multi-asset fund with a diversified portfolio of collectives, transferable securities, direct equities, fixed interest, exchange traded funds, derivatives, warrants, money market, cash, near cash and deposits.
“There are no restrictions on the fund managers, Ross Henderson and Tony Yousefian, in terms of type, geography or sector. Cash can be up to 100 per cent of the fund. This fund is an absolute returns fund, which can be an appealing solution in such uncertain markets. There does seem to have been outflows from the absolute return sector in favour of riskier assets but this is still likely to appeal to those that are unconvinced of a strong economic recovery. The intention is to keep volatility to a minimum, at least below the average for the absolute return sector.
“The fund already has around £10m under management which should give it the flexibility to use all asset types available. Given the trend to investment outsourcing, this may appeal to those advisers who want to leave the decision making to a third party on what assets, asset classes and geography to invest in.”