Rathbones to launch third multi-asset fund

Rathbones is to add a third multi-asset fund to its range, to be run by investment director David Coombs. The fund will be a more aggressive, higher risk offering, in comparison to the group’s existing two multi-asset portfolios.

The Rathbone enhanced growth portfolio seeks to generate, on average, 2 per cent above the returns from a combination of 70 per cent MSCI World Index and 30 per cent MSCI emerging markets index over the long term, with a volatility targeted to be 100 per cent of equity volatility. 

The fund has no specific yield target.  The aim is to target a return over a minimum of five years, but ideally over 10 years and above.

Coombs says: “We believe that in 10 years’ time, the weighting to emerging markets in the MSCI World Index will more closely match their share of global GDP than current stock market capitalisations.  The International Monetary Fund is forecasting that emerging markets share of GDP could be as much as 51 per cent by 2013.  This ties in with our forward-looking message.”

Coombs runs the £31.4m multi-asset total return fund and the £48m multi-asset strategic growth fund. The total return fund has returned 7.7 per cent over the year to 12 July, according to Financial Express. The strategic growth fund is to return 12 per cent over the year to 12 July, according to the same data.