Skandia Investment Management has brought out a global equity multi-manager fund.
The Skandia global dynamic equity fund initially provides access to a portfolio of 12 regional or country-specific segregated mandates from different fund managers.
Skandia says regions and asset classes outperform over different time frames. It has pitched the new fund as a cost-effective, one-stop solution for investors looking for diversified global equity exposure.
The portfolio was designed to produce similar returns as investing in each region separately, but with lower volatilty. The underlying managers are carefully selected and blended by Skandia and will be monitored by its
investment research team.
Manager selection is expected to be the main source of return above that of the MSCI AS World GDP index, but flexible asset allocation is also expected to enhance returns. The percentage of the overall portfolio that is
allocated to each manager will vary, which makes this fund different to Skandia best ideas funds where each manager has an equal weighting.
At launch, the global dynamic equity fund was split 35 per cent in the US, 30.5 per cent in Europe including the UK, 15 per cent in Asia, 10.5 per cent in Japan and 9 per cent in emerging markets.
The portfolio comprises some well-known names such as Gartmore, which runs the emerging markets ex Asia mandate and Schroders, which runs the UK equity mandate. Other management groups will be unfamiliar to UK investors. These
include US management groups Epoch, Marsico, QMA and Acadian and Australian group MIR, which shares the Asia Pacific ex Japan mandate with First State.
Where more than one manager is responsible for a particular region, Skandia intends to take advantage of different investment approaches that should complement each other in the overall blend.
Skandia believes that its ability to appoint institutional fund managers around the world in addition to retail managers in the UK is one of its main strengths. Its fund opens up access to these funds for investors who cannot
meet high minimum investment levels on institutional funds.
It also helps advisers by taking care of asset allocation decisions and monitoring the portfolio, which is time-consuming.
However, it may appeal to generalist IFAs who need to free up their time to deal with a range of subject matters for their clients rather than specialist investment advisers who may prefer to make their own asset