Sarasin & Partners in fund of funds launch ‘evolution’
The investment house has been investing in specialist funds for its clients for several years and has more than £1bn of assets invested with third-party managers. Mr Monson said the launch of the Sarasin Global Diversified Fund of Funds and the Sarasin Global Equity Fund of Funds was an evolution of that investment process.
He said: “We have a long experience of managing both global equity and broadly balanced funds, meaning we are able to provide an open architecture that will appeal to investors wanting a further measure of diversification.”
The new funds will be managed by a four-strong team led by partner Sam Jeffries.
Each portfolio will have 15 to 25 funds selected from a wide fund universe. Mr Jeffries said the funds included in the portfolio will be chosen through a “proprietary and rigorous bottom-up screening process”.
He said: “This uses idea generation that leverages off Sarasin & Partners’ macro-economic strategy, which identifies long-term trends and investment themes.
“As authorised investment funds they will now be available to both existing clients and the wider public in the UK. Investors will of benefit from the usual tax-efficient advantages of having the individual fund holdings in a pooled fund.”
The funds will be structured as UK FSA-authorised investment funds categorised as Oeics under the non-Ucits retail scheme and will be listed in the IMA Specialist sector.
Both funds will have long-term capital growth objectives with different risk profiles.
The Sarasin Global Equity Fund of Funds will be measured against global equities benchmarked 50 per cent with the MSCI All Countries World Index and 50 per cent with the MSCI All Countries World Index Sterling Hedged.
The Sarasin Global Diversified Fund of Funds will be measured against a composite index of 50 per cent global equities, 40 per cent government and corporate fixed interest securities and 10 per cent in cash.
Retail A share classes will have a 1.5 per cent annual management charge, and Mr Jeffries said he and the other managers will try to negotiate the best possible terms on which to invest in the underlying funds. The minimum investment for retail classes is £1000.
Rob Simpson, managing director of West Midlands-based Simpson Financial Services, said: “These funds are a bit pricey, and in my experience multi-manager funds are more expensive. However, if they can generate good returns for half a percentage more, that is a good thing for clients who want active fund management.”