Forsyth Partners has launched a new Bermuda-domiciled range of funds, including hedge funds, called the Forsyth Managed Strategies Funds.
The new range has been constructed using a diversified portfolio consisting of five distinct asset classes – equities, fixed income, hedge, property and commodities – and attempts to efficiently balance the differing risk/reward profile of these asset classes.
The Forsyth Managed Strategies Funds have been designed to give investors ‘lifestyle’ options with regard to the level of investment risk they assume in the absolute, not relative, sense and the level of reward an investor expects for this risk.
Forsyth Partners has created three Funds in the Forsyth Managed Strategies Funds range that are dictated by predetermined asset allocation/risk parameters:
Forsyth Managed Cautious Fund – low risk
Forsyth Managed Balanced Fund – medium risk
Forsyth Managed Aggressive Fund – high risk
Investors can choose a strategy according to their level of desired risk.
The fourth Fund in the Forsyth Managed Strategies Funds range is the Forsyth Managed Hedge Fund. This portfolio is 100 per cent exposed to hedge assets, but diversification is achieved by investing across four hedge fund of funds offering differing risk/reward profiles and diversified across a multitude of hedge strategies.
Each of the funds is managed on a fund of funds basis and benefit from Forsyth Partners’ proven fund research capability in terms of the selection of funds, utilising both quantitative and qualitative techniques. The funds are available in USD, EUR and GBP.
Commenting on the launch, chief investment officer Peter Toogood says: “The creation of the managed strategies portfolios is Forsyth Partners’ response to the third generation of fund management which we believe is about offering tailored financial solutions based upon concepts of risk and return.
"We believe that fund offerings in isolation will be increasingly irrelevant to wealth management. In the brave new world, fund management companies will offer the basic product and we will use our core competence in fund selection, combined with a well defined and robust asset allocation process, to offer clients risk profiled products.”
The investment objectives of each of the Funds are as follows:
The Forsyth Managed Cautious Fund is designed for investors who seek long term asset growth and who are, perhaps, concerned about the volatility of financial markets. The Fund is most suitable for those most concerned with preservation of capital. This approach is recommended for investors who have a time horizon of less than three years.
Indicative portfolio: 5 per cent equities; 60 per cent bonds; 25 per cent hedge; 5 per cent property; 5 per cent commodities
The Forsyth Managed Balanced Fund is aimed at investors who seek long term asset growth but who are willing to accept a certain degree of risk within their portfolio. This approach is recommended for investors who have a time horizon of three to five years.
Indicative portfolio: 35 per cent equities; 15 per cent bonds; 25 per cent hedge; 5 per cent property; 20 per cent commodities
The Forsyth Managed Aggressive Fund is aimed at investors who seek long-term asset growth but who are willing to accept a higher degree of risk within their portfolio. This approach is recommended for investors who have a time horizon of longer than five years.
Indicative portfolio: 65 per cent equities; 5 per cent bonds; 5 per cent hedge; 5 per cent property; 20 per cent commodities
The Forsyth Managed Hedge Fund’s investment objective is to offer investors the opportunity of achieve capital appreciation in periods of both rising and declining markets, while aiming to reduce the various risks associated with investing. This Fund will aim to offer exposure to a mix of alternative investment strategies including long short equity, global macro, market neutral, convertible arbitrage, fixed income arbitrage and event-driven.
Indicative portfolio: 100 per cent hedge
The minimum investment in each of the Funds is USD 10,000 or the currency equivalent, with subsequent investment of USD 5,000 and the annual management fee is 2 per cent.