Kleinwort Benson has launched two new multi-asset absolute return funds designed to minimise risk whilst delivering long term performance relative to a cash-based benchmark.
Kleinwort Benson is an established provider of banking, financial and wealth management services to corporate and private clients in the UK and Channel Islands. Jeremy Beckwith, Chief Investment Officer, said: 'Investors today are seeking innovative products that offer better protection of capital combined with growth potential in absolute terms. In response, Kleinwort Benson developed a range of enterprising investment solutions. We believe that the success of our multi-asset range, along with the forthcoming launch of our DEVA absolute return equity volatility funds, demonstrate the sophistication of our investment management approach without peer in the UK wealth management industry. Our Elite funds have been managed along strict risk / return parameters and have, in their first year, achieved exactly what we set out to do, despite volatile market conditions. The new Endeavour funds now bring a family of multi-asset class solutions into the UK onshore fund market place for the first time.'
The CF KB Endeavour Absolute Return Fund and CF KB Endeavour Balanced Total Return Fund combine traditional asset classes such as bonds and equities with alternative assets such as real estate, commodities, hedge funds and private equity. These innovative portfolios are the result of extensive asset allocation research conducted in conjunction with a leading independent external consultant. The funds are actively managed using some of the most sophisticated techniques available and have further extended the frontier of multi-asset investing.
The new onshore funds are based on successful offshore models: the KB Elite Absolute Return Fund and KB Elite Balanced Total Return Fund, both aimed at sophisticated investors, which were launched in August 2005 and have built a strong one-year track record. The Elite Balanced Total Return fund returned 9.9 per cent*, outperforming the long-term goal of Libor + 4.0%. The Elite Absolute Return fund delivered 6.4 per cent*, whilst maintaining volatility at an impressive 2.5%.
With the launch of the onshore Endeavour funds Kleinwort Benson presents attractive absolute return investment options for high net-worth individuals and institutions. The new funds are offered with varying risk/return profiles. The CF KB Endeavour Absolute Return Fund aims to deliver long-term returns of two percentage points above Libor annually, while the expected volatility resembles a short-to-medium-term gilt. The CF KB Endeavour Balanced Total Return Fund seeks to generate long-term annual returns of four percentage points above Libor, with expected volatility level of a medium-to-long-term gilt. Based on the current one-month Libor rate of 4.7 per cent, this could translate into a return after charges of about 8.7 per cent gross of tax.