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PSigma Investment Management officially launched its new Balanced Managed fund of funds last week as part of its overall strategy to bring its private client expertise to a wider market.

The new vehicle will invest in a number of different funds, including collective investment schemes, unit trusts and hedge funds, to achieve a diverse exposure for investors while reducing risk.

The fund is an extension of the Wealth Management Solutions vehicle, which was previously only available to private clients at PSigma.

Tom Becket, manager of the fund, said: "It is our intention to start the portfolio with a total of about 40 per cent in equities. We will lean towards international markets, where we see a greater opportunity set in a low-growth environment and the potential for enhanced returns from ongoing sterling weakness."

Mr Becket said he would follow a four 'P' principle when deciding what funds to invest in, focusing on people, philosophy, process and performance.

With people and philosophy Mr Becket said he would be focusing on identifying managers' individual talent as well as their philosophy and style. Process meant he would be trying to understand managers' criteria for geographical and portfolio positioning. With performance he said he would compare a fund's performance in different investment conditions.

Mr Becket added unlike some of his competitors he particularly liked to invest in funds with flexible global mandates. In this regard, he said, M&G's £3.7bn Global Basics fund would be a core holding.

The fund will also invest in thematic areas, with its current number one choice being healthcare. Mr Becket said he was attracted by the short-term defensive characteristics and longer-term growth potential of the sector.

Minimum investment for the fund is £10,000. The initial charge is 5.25 per cent and the AMC is 1.5 per cent.

More than one-fifth of the portfolio will be invested in global equities, with around 17 per cent in the UK, 15 per cent in alternatives, including funds of hedge funds, and 10 per cent in cash. The rest of the portfolio will be made up of commodities, property and bonds.

John Howard-Smith, managing director of PSigma Investment Management, said: "We believe the new Balanced Managed fund of funds will prove timely and popular in volatile markets. We hope investors will recognise our ability to deliver 'real' rates of return and that the old-fashioned split between property, equity and fixed interest offered by the majority of our peers is out-dated."