View more on these topics

Privalto combines active and passive management with tracker

The Privalto Millennium tracker fund is an Oeic that combines the low cost and liquidity of passive investment with active asset allocation.

This absolute return fund will track the BNP Paribas Millenium 10 Europe Series 3 (Sterling Hedged) Total Return index. The index is geographically diverse and comprises nine indices that represent different asset classes.

Bonds are represented by the iBoxx Euro Index Eurozone Sovereigns 5-7 years index, equities are represented by the S&P 500, Dow Jones Eurostoxx 50, Hang Seng and Tokyo stock price index. The Dow Jones-AIG Commodity index, USD-EUR Cross Currency Rate, EPRA Eurozone Index and Capitalised Euro OverNight Index Average represent commodities, currencies, commercial property and money markets respectively.

The construction of the Millenium index is based on the efficient frontier theory which focuses on the maximum rate of return for the level of risk that is taken. Allocation to the underlying indices is adjusted every month through a quantitative model based on returns, volatility and correlation.
Weightings fall within set ranges so that equity, commodity and currency allocations can be up to 25 per cent long or short. Commercial property may comprise up to 25 per cent of the index and for bond and money market, the weighting is up to 100 per cent.

This fund puts a multi-asset spin on a tracker fund in a way that could bridge the gap between active and passive funds. This could provide investors with the benefit of diversity with lower costs than actively managed multi-asset funds.

However, the computer-based quant model which underpins the asset allocation relies on sustained market trends. It is not expected to perform when there are no sustained trends or during short-term market turmoil. New trends that follow a change in market conditions need to become fully established for the quant model to be at its most effective.


Newton renames Absolute fund

Newton Investment Management is to change the name of its absolute return fund. Absolute Intrepid will become the Real Return fund on June 30. The group says the new name better reflects the funds objective, of achieving real rates of return from predominantly British holdings. The fund is managed by Iain Stewart using Newtons global […]

Manager focus: Patrick Ryan

Lazard Asset Management’s Patrick Ryan is adding stocks he says will not only survive a recession, but also participate in a rally, as the world’s economic future is too difficult to call.

Leading Edge – April 2017

There is little doubt 2017 will be a year of political uncertainty. Leading Edge is Royal London Asset Management’s regular review of investment markets. This edition explores some of the impacts that this uncertainty is having on investors, from the pitfalls of prediction within UK equity investing to the dangers of opting for convenience over […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm