The VAM Managed Fund, which will aim for an annualised return of between 7% and 10%, has a minimum investment of $10,000 and there is a choice of three currency classes available covering US dollars, pounds sterling and the euro.
VAM stated that the launch is in response to rising demand from offshore independent financial advisers for an actively managed fund solution that allows clients to access the firm’s managers in a single investment.
The portfolio’s four asset classes – equities, bonds, real estate and commodities – are invested in VAM’s existing range of funds.
There is also a proactive asset allocation strategy for the fund using Newscape’s Multi-Asset team lead by Richard Bonnor-Moris to manage the tactical asset allocation and risk management of the fund.
Target asset allocation for the Managed Fund at launch is as follows:
- Developed market equity 35%
- Bonds 39%
- Cash 2%
- Emerging market equity 4%
- Commodity focused equity 8%
- Real estate equity 6.0%
This asset allocation is reviewed dynamically in line with economic outlook and a focus is placed on monitoring and managing loss over all time periods using a hedging strategy.
Richard Bonnor-Moris, lead manager, VAM Managed Fund said: “Shares, bonds, commodities and property generally perform differently at various stages of the economic cycle. In determining the asset allocation we prefer to put investments into three categories: Anchors, Enhancers and Diversifiers rather than the more traditional categorisations. When they are combined in a single portfolio, it is possible to produce more consistent long-term growth with a lower level of risk than a pure share-based fund.”
There is an initial charge of 5% and annual management charge of 1.75%. No performance fee will be levied and IFA commission is available.