SWIP enters fund of funds market with two absolute return funds

The two unfettered funds will be managed by SWIP’s multi-manager team led by Mark Harries and Simon Wood. The funds, which will provide investors with access to a range of specialist investment funds and will be managed with an absolute return bias, have a minimum investment of GBP1,000 and will be available on the main UK IFA platforms.

The SWIP Multi-Manager Diversity Fund will invest in a portfolio of funds offering access to a wide range of geographic regions and asset classes including equities, bonds, cash, property and a range of alternative assets including funds of hedge funds and commodities. The fund aims to achieve long-term capital growth gross of fees of 4 per cent above inflation, as  measured by the UK Consumer Price Index.

The SWIP Multi-Manager Select Boutiques Fund aims to achieve long-term capital growth through investment in a portfolio of funds with exposure to UK and international equity markets, the majority of which will be managed with an absolute return mindset by specialist investment managers.

‘The launch of the two funds is an important step in the development of SWIP’s multi-manager business,’ says head of multi-manager distribution Bernard Henshall. ‘Funds of funds are seeing high levels of interest from investors who face the difficulty of monitoring and analysing large numbers of funds. As fund analysis and asset allocation can be outsourced to full-time specialists, multi-manager funds free up time that advisers can use more profitably with clients.

‘We have chosen to launch into the fund of funds market to meet demand for increased diversification and for funds that aim to deliver real returns in any market condition. The funds are able to invest in the broadest range of assets from specialist fund managers and the balance of assets makes the multi-manager funds a real alternative to a typical balanced or cautious managed fund.’