Investec will bring its Diversified Growth fund to the retail market later this year, competing with the likes of GARS in the space.
David Aird, UK managing director at Investec Asset Management, says the manager will start a retail push for the product in autumn this year.
The product targets CPI + 5 per cent, categorising assets into three strategies: growth, uncorrelated and defensive. Philip Saunders manages the fund alongside Michael Spinks.
The fund has been running for institutional clients for three years, and has amassed £665.4m in assets, as at the end of June. It has returned 8.3 per cent on an annualised basis over the past three years, against an index of 1.6 per cent and a sector average of 10.1 per cent.
However, the launch will mean Investec goes up against behemoth Standard Life Investment’s GARS product, which has £23.3bn in assets under management.
Aird likens it to a David against Goliath contest, but thinks that the simplicity of the Investec product will give it an edge in the market. “Ours will be far simpler to explain,” says Aird.