Investec offers institutional multi-asset fund


(Justin Cowper)

Investec Asset Management has announced the launch of an Australian-domiciled institutional fund to capitalize on the trend to multi-asset investment offerings and the firm’s large international multi-asset team.

Called, the Investec Diversified Growth (Australian) strategy, the fund will be managed as part of Investec Asset Management’s range of global multi-asset strategies. Michael Spinks and Philip Saunders, co-managers of the fund, will work with the 24-strong multi-asset team.

In a statement, Investec said: “[The fund] is powered by one consistent investment process, centering on dynamic allocation across a globally diverse range of asset classes grouped together into three baskets categorised by behaviour rather than labels: ‘growth’, ‘defensive’ and ‘uncorrelated’, including equities, fixed income, currencies, commodities, infrastructure and broader alternative assets.”

Justin Cowper, Australian country head for the business, said that several institutional investors already used the strategy through segregated mandates. The strategy will involve in-house active capabilities, passive funds and direct investments. It aims to provide real returns of Australian CPI-plus 5 per cent, over rolling five-year periods, with half the volatility of a standard global equities strategy.

He said: “The launch of our dedicated strategy, in an Australian-domiciled unit trust, is a natural development in the evolution of our business in Australia and helps to open up this opportunity to a wider investor base.

“Increasingly, institutional investors are looking for a standalone multi-asset investment solution that can fit within a broader investment portfolio, without overpowering the overall investment strategy. We believe this solution is best met by investment managers with a global mind-set and investment platform, who are able to utilise their expertise across a broad range of asset classes with the aim of delivering a consistent outcome.

“In recent years we have seen increasing demand from our clients globally for diversified growth strategies and have already won a number of segregated mandates. Increasingly, we believe that they will be a solution for investors globally in the future. Australia is currently faced with a low interest rate, low inflation environment, leading institutional investors to question the source of future returns…”