The Investec GSF multi-asset protector fund is run on a fund of funds basis by the same portfolio managers as the UK Oeic, established in January 2009. Co-portfolio managers Philip Saunders and Max King will use a similar investment process but the offshore fund will have a bias towards US dollars.
Saunders has over 29 years’ investment experience. He was a founding director of Guinness Flight Global Asset Management, acquired by Investec in 1998. King has 26 years’ investment experience and has worked for JO Hambro Capital Management, Finsbury Asset Management and LF Rothschild.
Saunders and King will invest across equities, bonds, commodities, currencies, alternatives and cash, mainly through other funds managed by Investec. It can also invest in funds managed by other firms, but only if they bring something to the portfolio that is not available through Investec’s own funds. Exchange traded funds and other tracker funds can be used.
Asset allocation will move been the multi-asset investments and cash as market conditions change. In rising markets, the fund will have greater exposure to the multi-asset portfolio and will move more in to cash when markets fall. The fund also has a protection feature, which works through a derivatives contract that acts like an insurance policy, so that the fund should always be at least 80 per cent of its highest share price in US dollars.
This fund provides cautious investors with three defensive layers – the multi-asset fund of funds approach rather than pure equity exposure, the dynamic asset allocation between the multi-asset portfolio and cash, plus the 80 per cent protected price feature.
However, protection does not come cheap. Investors are charged 0.15 to 0.5 per cent for the protected price feature on top of a 1.6 per cent annual management charge and 0.3 per cent administration charge.