JO Hambro Capital Management is looking at launching a multi-asset fund restricted to fixed-income and equities.
The boutique was bought last year by Australian asset manager BT Investment Management which has a range of funds, including Australian equities and fixed-income funds.
BT Investment Management has a team of eight in fixed income and runs four funds that invest in fixed-interest securities.
JO Hambro Capital Management chief executive Gavin Rochussen says: “We could get fixed income expertise from BT Investment Management. We have fantastic equities capability here. You will still need someone to oversee the process, like a head of multi-asset.”
Rochussen thinks a multi-asset proposition with just equities and fixed income is sufficient diversifier.
He adds: “It would be just equities and fixed income. I would not put in any esoteric investments. The reasons why I would not include these is costs, complications and liquidity. Investors are just looking for a product that is simple to understand.”
He adds that he sees risk-profiling in multi-asset funds as useful but it is too early to say whether the firm will risk-rate.
Whitechurch Securities head of research Ben Willis says: “It seems like they want a plain vanilla product and that is understandable. The history of the cautious managed sector is that it was born from funds that were basically a mix of fixed interest and UK equity.”