Quilter Investors, the multi-asset investment business of Quilter, is adding a hedge fund replication strategy – the Goldmans Sachs Absolute Return Tracker — to its Cirilium Passive Portfolios offering for the first time.
Quilter Investors was one of the first portfolio managers to offer financial advisers and their clients’ exposure to alternatives in a passive fund of funds structure.
The Goldman Sachs Absolute Return Tracker fund is a diversified, multi-strategy portfolio that invests long-short across equities, bonds, currencies, credit and commodities. It offers daily liquidity with full transparency of positions. The aim is to replicate the performance of an aggregate of the hedge fund industry, based on the performance of 3,000 hedge funds.
The alternatives allocation is around 7% for the four risk profiles from conservative to dynamic, but the asset class is not held in the Cirilium Passive Adventurous Portfolio, which is invested solely in equities.
Quilter Investors is also in the process of seeding a new passive alternatives fund from another major asset manager for use within the Cirilium Passive portfolios, and this will be announced and added in due course.
Sacha Chorley, portfolio manager at Quilter Investors, commented: “Hedge fund exposure is not widely available in passive fund of funds, but we believe multi-asset portfolios across active, passive and blended strategies should have all the tools at their disposal to enhance diversification to help portfolios perform well in a variety of market environments.”
