Newscape launches risk-targeted multi-asset fund
Newscape Capital Group has launched its second Ucits fund, the Newscape Diversified Growth Fund.
Following a genuine multi-asset strategy, the fund aims to achieve a consistent double-digit return with single-digit volatility over the longer term, and has an annualised benchmark hurdle of seven per cent.
The fund uses the same portfolio construction and risk management processes employed in Newscape’s Model Portfolio Service (MPS) that has been run by the firm for wealth managers and corporate pensions since September 2009.
While based on the same target risk concept, the fund composes a broad universe of single stocks, bonds, currency and hedging instruments over and above the unbundled funds proposition of the MPS.
Stephen Decani (pictured), chief executive at Newscape, says: “The Diversified Growth Fund is a combination of the capabilities we have already deployed as a business, our collective investment experience, and the things we continue to learn each day about markets and the challenges faced by investors.
“The MPS has been successful in the run up to Retail Distribution Review because each risk portfolio focuses on very controlled risk management and loss mitigation as opposed to chasing returns. Bringing this process together with strong single stock selection, currency management and dynamic hedging, we hope to create a compelling proposition in a single collective investment that is increasingly attractive at an institutional level.”
The fund is targeting clients including fund allocators, discretionary managers and pension funds, particularly for the latter where targeted returns within growth assets are sought.
The fund captures Newscape’s in-house expertise with portfolio construction and risk overseen by Richard Bonnor-Moris, who heads the Model Portfolio Service. The firm’s head of fixed income Charlie Kerr and chief investment officer Philippe Bonnefoy will oversee specific bond and equity risk allocations as well as currency and hedging overlays within the fund.
The Diversified Growth Fund joins the Newscape Strategic Bond Fund, launched in November 2010, on Newscape’s Ucits platform, and further specialist strategies are expected to be added within the coming months.
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