Credit Suisse has received shareholder approval to convert its Multi-Manager Incubator fund into a mu...
Credit Suisse has received shareholder approval to convert its Multi-Manager Incubator fund into a multi-asset vehicle and will move it from the Active to Balanced Managed sector.
The £10m fund, renamed Multi-Asset Growth, will differ from the group’s first multi-asset offering, Distribution, as it will not be yield-centric.
Aidan Kearney and Graham Duce, co-heads of the multi-manager range, have been reducing positions in the Incubator fund that are not suitable for the revised remit.
They will introduce equity funds, fixed interest and alternative assets in the coming weeks from a global universe.
The fund will be split 50% in equities and fixed income, 30% in alternatives and tactical opportunities, and the remaining 20% traded over shorter periods of time. It will hold around 25 positions.
Among the equity fund offerings, Kearney said M&G UK Select is likely to feature in the portfolio for a FTSE 100 tilt, as are Artemis Income and Saracen Growth.
“The latter is a favourite of ours as we think the investment process is value-added over time and we have chosen Artemis Income for liquidity purposes as it is cashflow centric,” he added.
For Asia, Veritas Asia and Hexam Emerging Markets are expected to be included in the line up.
In the fixed interest portion, the duo is also seeking exposure to Asian markets with a position in Franklin Templeton Asia Bond.
Kearney and Duce are also keen to have hedge-fund type exposure with the inclusion of Breven Howard Global, Dexion Trading and BlackRock UK Absolute Alpha.
“We are looking for liquidity in the hedge fund space and different styles of management. Hedge fund positions are likely to be smaller but we will hold more of them and be active when necessary. We do not want to be stuck in a big position in a bad market,” added Kearney.
The fund will only have one direct commodity position with a platinum ETF, held in the tactical element of the portfolio.
Kearney said a fair amount will remain in cash as they expect the market to be volatile and maybe move downwards in the short-term.
Charges are to remain the same.
