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Thames River rules out single-country funds for star duo

Thames River says it will not launch single-country multi-manager funds for Gary Potter and Robert Burdett because it does not believe there is sufficient adviser demand.

Investment director Michael Warren says IFA demand for such portfolios earlier in the decade has waned.

He points to the European, North America, Asia and Japan funds that Burdett and Potter ran at Credit Suisse, which attracted only £78m between them despite some of the funds having strong track records.

Potter and Burdett will be joining Thames River in August after they quit Credit Suisse in February.

Warren says: “The initial concept for multi-manager has always been simplicity and access to a wide range of fund managers. There was initial demand but IFAs have not caught on to the story and fund sizes prove that the concept does not work.

“We will probably be looking to launch around five or six funds in the long-only multi-manager market with bigger pots of money in them, all of which will be multi-asset vehicles. We are also looking into a socially responsible fund of funds while a couple of offshore vehicles will be on the radar.”

BestInvest senior adviser Hugo Shaw says: “Whether it be on a country or continent basis, when you adopt this kind of fund there tends to be an element of risk as sectors tend to be skewed. The active, balanced and cautious approach seems to be the one the market prefers. Advisers would also look at a global fund as a diversifier as opposed to continents.”

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