Octopus boosts MM range with double launch

Octopus Investments has bolstered its multi-manager suite with two launches, adding a global absolute return vehicle and an emerging markets fund.

The IM Octopus Global Strategies and IM Octopus Emerging Market Equity funds are scheduled to launch on 8 November.

The funds will be managed by Bish Limbu, who heads up the group's multi-manger range, with support from the boutique's wider investment team.

Lothar Mentel, Octopus chief investment officer and head of multi-manager, said the Global Strategies fund will tap into alternative funds, including long/short equity funds and thematic propositions with low correlations to risk assets.

The fund will sit in the IMA Absolute Return sector and is targeting a LIBOR-plus 4% return.

"The global strategies fund will achieve uncorrelated returns when equities are performing poorly through investing in both active and passive strategies," said Mentel.

"There are too many funds in the absolute return sector which are not delivering but we believe through having minimal exposure to risk assets the fund is offering investors less of an up and down ride and instead will provide consistent positive returns."

Meanwhile, the Emerging Market Equity fund will sit in the IMA Emerging Market sector and will predominately invest in the BRIC nations. The portfolio will invest in around 30 funds, with two-thirds in active strategies and the remainder in ETFs.

Mentel said the fund will offer a greater level of diversification than single manager and regional funds, which have direct exposure to emerging markets.

"The Emerging Market Equity portfolio will invest in the higher growth investment areas within the BRIC nations and Eastern Europe as these are the fastest growing."

Octopus' multi-manager funds are standalone vehicles but also function as building blocks for the group's risk-based discretionary service, Octopus Portfolio Manager.

Mentel said: "These funds both offer something very different when compared against typical discretionary fund management (DFM) offerings.

"Global Strategies has access to a broad range of alternative investment strategies to target equity-like returns without being tied to the equity market cycles, whilst few DFM models can achieve the sheer investment depth and level of diversification within emerging markets as we can through a dedicated emerging market portfolio."