The Gartmore multi-manager absolute return fund has a 5 per cent weighting in the Gartmore European absolute return fund. Head of multi-manager Tony Lanning says the multi-manager fund will not hold traditional long- only equity funds because of volatility.
The multi-manager absolute return fund was designed to fill the gap between savings accounts and cautious funds. It is up by 2.84 per cent since launch six months ago and focuses on absolute return funds and specialist funds.
Absolute return funds can make up 10-35 per cent of the portfolio and the current 20 per cent weighting comprises funds from BlackRock, Cazenove, Polar Capital and Gartmore. Up to 20 per cent can be invested in specialist equity funds and the current 7 per cent weighting is split between three funds.
One is a specialist insurance fund that invests general reinsurance and another is a global infrastructure fund and the third is a long and short UK equity fund from the Cartesian boutique, which takes a defensive approach.
Lanning says: “We launched in the eye of the storm on October 31 last year and are almost 3 per cent up while some funds in the IMA absolute return sector are down by 5 per cent. We have had a down month but will smooth out returns over one, two or three years.”