The new fund range will complement the more traditional funds managed for Way by multi-manager specialist IMS and boost choice for investors who use Way’s range of tax-efficient products. As with all the Way growth funds, it will be managed on a nil yield basis to suit Way’s range of trust-based IHT mitigation plans.
The Way MA growth portfolio will be able to invest in all asset classes allowed under the non-Ucits retail scheme rules. Britton will manage these asset classes through three strategies – core, conviction and alternative.
The core strategy will comprise 10-65 per cent of the portfolio and will invest mainly in funds with a global equity mandate. Although each fund may have a different style, they will be blended together so that the portfolio does not rely on the success of any single style.
The conviction strategy will also comprise 10-65 per cent of the portfolio and will represent the investment themes that Britton believes will be successful. He may manage this part of the portfolio to enhance exposure to particular regions, sectors or funds that are also contained in the core element. One example of this is Britton’s initial allocation of almost 28 per cent to US equities to reflect his belief that the US will be the first region to recover from recent problems in the global economy.
Finally, the alternative strategy will make up 0-25 per cent of the portfolio and will provide access to more defensive investments which will diversify the portfolio. Britton expects to hold assets such as absolute return funds, hedge funds, direct commodities, fixed interest and structured products in this part of the portfolio. Exchange traded funds such as iShares ETF Brazil and ETFS agriculture may also figure to give Britton targeted exposure to specific areas.
This fund is likely to be a welcome addition to Way’s range as it opens up a broader multi-manager style to the company’s investors, giving the fund more tools to weather market storms than the existing fund range. However, investors will need to share Way’s faith in Britton’s convictions, as these will determine whether the portfolio will flourish or fail.