Investec to overhaul multi-asset fund

Investec to overhaul multi-asset fund

Investec is seeking to overhaul the way its £130m Managed Growth fund operates, putting a greater onus on direct multi-asset investing in a bid to 'reinvigorate' the vehicle.

The fund currently invests primarily in the likes of investment trusts and other portfolios, with an "equity-centric" approach.

However proposals which go to a shareholder vote in the coming weeks would see the fund renamed as Global Multi-Asset Total Return, with changes to its investment objective and policy emphasising a multi-asset focus.

Article continues after advert

"The fund will not be restricted to investing primarily in investment trusts and other funds but can instead focus primarily on investing in a broader range of asset classes, including but not limited to equities (shares), fixed interest instruments (bonds), commodities, property and other alternative assets," the firm said in a note to investors.

"This increased flexibility is intended to allow the investment manager to maintain the growth focus of the fund whilst increasing diversification, ultimately aiming to provide a smoother return profile and long-term positive returns.

"It is anticipated that investing directly in a range of securities rather than through investment trusts or other funds will reduce the ongoing charges figure for the fund significantly."

David Aird, Investec UK client group managing director, said ongoing charges on the fund could fall from 1.07 per cent to around 0.87 per cent.

He noted that primarily using investment trusts was "quite an expensive way" to invest, while other changes would enable a broader multi-asset approach.

"It's a change away from being quite equity-centric. It will be managed in a multi-asset way, using the whole spectrum," he said.

"With Managed Growth we chose, rather than merging it away, to reinvigorate the fund."

Mr Aird added that the fund house was "constantly reviewing" its offerings. Last year, Investec merged away its Strategic Bond fund, citing the lower level of income available to its managers.

Investec is not the first to consider direct investing as a way to reduce costs, with Old Mutual Global Investors and Rathbones among those to have adopted this approach for multi-asset products of late.