FTAdviser.com

Advertising

SVM Asset Management is expanding its range of multi-asset fund of funds with the launch of a Cautious Managed fund and a Balanced Managed fund.

The products, tipped for launch later in the year, will use the same strategy as the company's £55m Global Opportunities fund, investing in specialist funds out of the reach of UK retail investors.

The vehicles are expected to be managed by Colin McLean and Donald Robertson, and will hold roughly 60 different funds.

The managers will focus on the growth economies and markets throughout the world, including emerging regions, but will operate cautiously.

Mark Noble, head of retail sales for the company, said the products would allow SVM to take its "pragmatic global approach" to a wider audience.

He said: "This is going to open the opportunity of our global strategy to a broader audience."

The portfolios will comprise a diversified line-up of equity funds with roughly 1-2 per cent exposure to underlying funds. The managers will tend use their maximum equity allowance, according to IMA Cautious and Balanced Managed sector definitions. The remainder of the portfolios will be in cash or bond funds.

Mr Noble said the products were aimed at investors seeking an alternative to traditional with-profits funds or life company managed funds.

He explained the managers would aim to generate the best possible return with minimum standard deviation. However, he said they would not work to strict targets. The funds will aim to outperform their respective sectors, Mr Noble added.

The Global Opportunities fund was launched in May 2006. To 21 January 2008, it returned 8.1 per cent against the IMA Global Growth sector average of 7.3 per cent, according to Morningstar.