The Rathbones total return and strategic growth portfolios were launched within the group’s private client offering last year and have been made available to the wider market for those IFAs not wishing to outsource investment management to a discretionary manager. Both funds will be managed by David Coombs.
The total return fund aims to beat the six month Libor rate by two per cent and targets one third of equity volatility on the MSCI World index in Sterling terms. Rathbones says the fund is ideal for lower risk and inexperienced investors.
The strategic growth fund targets outperformance of the Consumer Price Index by 5 per cent. The fund will be aimed at medium risk investors by targeting two thirds of the equity volatility on the MSCI World Index in Sterling terms.
Asset allocation within the two funds will be based upon liquidity, beta and alternatives with the investment team then asset allocating within a layer of sub-categories.
Coombs says: “We believe the multi-asset market has become fixated on out-performance relative to peers.
“Our process employs forward-looking asset allocation as the key driver of returns, not simply fund selection, to ensure performance matches investor expectations.”