Investec launches new fund targeting low volatility stocks


Investec Structured Products is launching a new smart beta fund that will be based on the FTSE 250 index.

The fund, which will launch next year, will track the 30 lowest volatility stocks from the UK mid-cap index. The fund will be evenly weighted and rebalanced monthly.

The new fund will closely resemble the existing Investec Qtrac UK Controlled Volatility fund, a Irish-domiciled Ucits vehicle that launched in March 2014, which is formed of the 30 least volatile stocks in the FTSE 100.

The new fund’s fees have not been defined yet, however, the current annual charge for the existing smart beta fund is 0.5 per cent.

Earlier this year, Investec launched the European version of the UK Controlled Volatility fund tracking the 70 lowest volatility stocks from 300 of the largest companies in 15 developed European companies.