Standard Bank Offshore has introduced a fund of funds for offshore investors who have a cautious attitude towards risk.
The cautious fund aims to produce capital growth and is denominated in either sterling or US dollars. Half of the portfolio is made up of bonds and the rest goes into stocks and shares and cash.
The fund is part of the company's strategic range, which was originally offered to investors only in South Africa. The introduction of capital gains tax to the South African economy prompted the company to make the range more tax efficient and the decision was made to offer it to investors in other countries, including the UK.
As a fund of funds, it invests in a range of funds from different management groups. This means that cautious investors who are wary of putting too much of their money in one area or one fund managers are diluting the risks.
The fund managers used by Standard Bank Offshore include Merrill Lynch, ACM and Perpetual.
As an offshore fund, it could suit investors who want a simple, tax-efficient way of investing. One drawback is that sophisticated investors may wish to have more of a say in fund selection, which the fund of funds approach does not give them.