View more on these topics

Swip takes global macro view

Scottish Widows Investment Partnership’s multi-manager team has boosted its MM diversity fund’s exposure to global macro strategies with a small holding in a fund of hedge funds from Brevan Howard.

Brevan Howard BH global is a broadly managed portfolio of hedge funds with a bias towards the firm’s flagship global macro hedge fund, the Brevan Howard master fund.

The Brevan Howard master fund specialises in global macro within fixed interest and foreign currency, a strategy that Swip expects to do well when other strategies are performing badly. The remainder of the portfolio is invested in the Brevan Howard equity strategies and Asia emerging markets strategies master funds and the strategic opportunities fund.

London-based Brevan Howard was founded in 2003 by former Credit Suisse head of interest rate derivatives trading Alan Howard, who Swip regards as one of the finest hedge fund managers.

On the equity side of MM diversity, Swip has increased exposure to overseas markets, as it believes that the outlook is poor for UK equities. It has added the Odey opus fund, which makes up 25 per cent of MM diversity’s equity exposure.

Swip’s multi-manager team says this fund’s global absolute return mindset is consistent with its own objective in producing absolute returns and has a good track record in falling markets. Manager Crispin Odey takes a high conviction approach, so that if he does not like sectors or countries, he would rather hold cash.

Head of multi-manager Mark Harries says: “Credit spreads have been priced as if 15 per cent of all investment-grade bonds would go bust. This is an extreme level, as on average 0.8 per cent go bust. We take our leads from the underlying fund managers. We cross-questioned them and decided to fully weight investment-grade corporate bonds so our exposure to the New Star sterling bond fund was upped to 5 per cent.”

Recommended

Class struggle

The Competition Commission’s finding that people buying payment protection insurance are being overcharged by 1.4bn a year follows action by the FSA against firms accused of misselling PPI.

Guide cover resized

Guide: Johnson Fleming’s managed auto-enrolment service for SMEs

Johnson Fleming has launched its new managed auto-enrolment service, designed to support SME businesses of up to 250 employees. The managed auto-enrolment service is not just about providing businesses with a software system for them to manage themselves, but more about outsourcing the administration of the project and scheme to Johnson Fleming’s auto-enrolment staff.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com