Cheviot Asset Management has come to market with a concentrated global fund of funds, its first laun...
Cheviot Asset Management has come to market with a concentrated global fund of funds, its first launch since more than 90 UBS staff defected to the group last year.
Cheviot Balanced is managed by Will Buckhurst and invests 85% of its assets in equities with the remainder in fixed interest.Structured as a Nurs, the product can invest in closed-ended vehicles and alternative asset classes such as funds of hedge funds, private equity and structured products.
Buckhurst said the fund will be fairly concentrated and holds between 15 and 20 funds at launch.
Cheviot evolved from boutique-house Cheviot Capital after being bought by former Laing & Cruickshank chief executive Michael Kerr-Dineen last year.
The company now has around 110 staff, the vast majority defecting from Swiss group UBS, which bought Laing & Cruickshank for £160m in 2004.
Buckhurst said the fund, which launched this week, incorporates Cheviot's investment philosophy.
He said: "We feel asset allocation and fund selection are two very different skills and you can gain better returns by splitting the two roles. As such, Cheviot CIO Alan McIntosh will be in charge of asset allocation while I will be responsible for manager selection."
Cheviot Balanced is benchmarked against the Apcims Balanced index and offers a yield in the region of 2.8%.
From launch, the product is taking underweight positions in fixed interest and the US, overweight positions in Europe, the UK and Far East ex Japan while being neutral on Japan.
Buckhurst said: "We see cheaper valuations in Europe and UK and increased M&A activity in these markets. By contrast the US market looks too expensive compared to other regions while, from a fund of funds point of view, there is a dearth of US fund managers."
Minimum investment is £10,000, with an initial charge of 5% and an AMC of 1.5%.
Initial commission is available up to 3% and there is 0.5% trail commission.