View more on these topics

WdB gives long players a spin

Williams de Broe has added the Resolution Cartesian UK equity 130/30 fund to three of its four multi-manager funds.

The company believes that the 130/30 strategy should lead to outperformance.

This strategy involves investing in a long-only portfolio, selling short 30 per cent of the value of the portfolio in stocks expected to fall in price, then reinvesting the proceeds from the short sales in the longonly portfolio.

WdB has added the 130/30 fund to its cautious, balanced and growth funds. The fund is also on the radar of the Henderson multi-manager team but they have decided to wait until the fund, which was launched at the end of last year, has a track record.

WdB says it is confident in the record that Resolution Cartesian managers David Stevenson and Andrew Kelly have established in running their long-only UK opportunities fund. It is also satisfied that the Resolution Cartesian team have the resources necessary to support the short part of the strategy.

Deputy fund manager Becky Williams says: “It is important to look at the long-only portfolio because in 130/30 funds, good managers have got to have the skills to pick long-only stocks. We can see David and Andrew’s skills from the UK opportunities fund and they also have the resources to support the short calls.”

WdB has also added a FTSE 100-linked structured product, which has a kick-out structure over six years, to the portfolios. It will provide the equivalent of a 17.75 per cent return a year, with the potential for early maturity depending on the index performance.

Cash weightings have been increased in a defensive move to protect the portfolios in the current downturn while preparing to move back into markets when opportunities appear.

Recommended

EU commission ban proposal overturned

The Association of Finance Brokers and Association of Mortgage Intermediaries have claimed victory in securing an amendment to the European consumer credit directive which would have banned commission.

Jelf Group acquires three new businesses

Jelf Group has announced its acquisition of Manson Insurance Group, Bartlett Davies Bicks Ltd and Carter & Co Risk Management Ltd, bringing its total amount of insurance and healthcare premiums to £320m.The Manson Group focuses on financial services, general insurance and healthcare and the acquisition will increase the amount of premiums that Jelf places with […]

Advisers happy to adopt CAR, says Zurich

The majority of advisers would welcome the introduction of customer agreed remuneration according to Zurich.The firm surveyed 910 advisers and 62 per cent said they would adopt CAR, provided it included commission offsetting and provided financial incentives such as reduced regulatory fees were offered in return.The reseach shows commission remains a popular choice for adviser […]

China’s economic bounce may already be over

By Mike Riddell (17 May 2016) Most people would explain the rally in global risky assets since mid-February as being primarily down to the spectacular volte-face from the Federal Reserve, where Janet Yellen (and others) dramatically toned down their narrative that the Fed would be hiking rates as many as four times in 2016. This explanation […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment