VAM Funds, the specialist Luxembourg-domiciled investment firm, is launching the VAM Managed Fund in partnership with Newscape Capital Group following an intensive pre-marketing programme to offshore advisers during September and October.
VAM Funds, the specialist Luxembourg-domiciled investment firm, is launching the VAM Managed Fund in partnership with Newscape Capital Group following an intensive pre-marketing programme to offshore advisers during September and October.
The launch represents VAM's answer to rising demand from offshore independent financial advisers for an actively managed fund solution that would allow their clients to access the firm's pool of talented managers in a single investment.
The Managed Fund will invest across four main asset classes - equities, bonds, real estate and commodities - via VAM's existing range of funds - with dynamic hedging.
VAM, a specialist adviser with some $442m funds under management, will draw upon the expertise of Newscape's Multi-Asset team lead by Richard Bonnor-Moris to manage the tactical asset allocation and risk management of the fund.
Newscape Capital Group is a specialist investment and advisory firm founded in 2008 and headquartered in London. It offers a range of products and services to institutional and intermediary clients including model portfolio management, separately managed accounts, Ucits investment funds, investment advisory and outsourced investment management services. The firm is independently owned and controlled by its management team.
Bonnor-Moris takes a disciplined and pro-active approach to asset allocation, which at launch will comprise 35% developed market equity, 39% bonds, 2% cash, 4% emerging market equity, 8% commodity focused equity and 6% real estate equity.
"Shares, bonds, commodities and property generally perform differently at various stages of the economic cycle," he said.
"In determining the asset allocation we prefer to put investments into three categories: Anchors, Enhancers and Diversifier, 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."
VAM views the Managed Fund as a core global holding around which investors can build their portfolio. The company is looking to achieve an annualised return in the region of 7-10%+ on a volatility spread in the same range. There is an Initial Charge of 5% and an Annual Management Charge of 1.75%. No performance fee will be levied.
