London-based fund of funds manager Coronation International has launched the Prism Fund, an Irish-domiciled dynamically managed multi-asset vehicle, with initial capital of USD15m.
Structured as a qualifying investor fund, the fund of funds aims to achieve capital appreciation over the medium term of three to five years while keeping volatility below 10 per cent and diversifying risk through tactical exposure to asset classes including equities, bonds, property, alternatives and cash.
Performance is measured against a composite benchmark based on these classes, consisting of the HFRX investible hedge fund index (25 per cent), three-month US Treasury bills (5 per cent), the MSCI World Index (40 per cent), the Barclays USD Global Property Index and the Citigroup World Bond Index (15 per cent each).
The fund features a concentrated set of 15 to 20 positions representing a variety of asset classes and fund strategies. Over time the strategy mix will change according to the manager's view of the markets. To save on fees where possible, exchange-traded funds may be used to obtain exposure to simple market beta.
'We developed Prism to meet client demand for a dynamic, sophisticated one-stop solution to global investing,' says Coronation chief executive Charles Barnick. 'In difficult times like these it can make sense to leave asset allocation in the hands of experts. We have an excellent team in place and believe clients' confidence in us will be well rewarded.'
The fund offers monthly liquidity at three business days' notice and monthly redemptions with 75 calendar days' notice. The annual management fee is 1.5 per cent and the performance fee is 10 per cent over hurdle. The minimum investment is EUR250,000.
Established in Dublin in 1996 and London four years later, Coronation International manages USD1.6bn in alternative and long-only funds of funds for international institutional and retail investors.
Founded in South Africa in 1993, Coronation Fund Managers is an owner-managed institutional fund management business and the largest listed independent fund manager in South Africa. It manages assets of USD18bn, mainly for pension funds and large institutional investors.