Group adds multi-manager offering to range, plus emerging income vehicle
Barings is extending its range of funds available to UK investors by applying for distributor status on its Dublin-domiciled multi-manager offerings.
Meanwhile, the firm is also seeking FSA approval for an Emerging Markets Income fund for institutional investors.
Ian Pascal, head of marketing at the group, said the fund will be under Ece Ugurtas and Barings may add a retail share class in the second half of the year.
The multi-asset funds of funds are named according to their risk profiles, with Extended Risk, Optimum Risk and Reduced Risk portfolios.
Launched in November 2004, the vehicles are run by the multi-manager team led by Sam Jeffries and each portfolio has holdings in asset classes such as equities, fixed income, property, structured products and hedge funds.
At the top of the risk range is the £27.6m Extended Risk fund, which aims for annualised returns in the region of CPI, plus 5%. Targeted annualised volatility is between 10% and 13%.
Over three years to 19 March, the fund made bid to bid returns of 6.24% compared with the offshore Asset Allocation Global Neutral sector average of 5.46%, according to Morningstar.
In the same sector, the £12.8m Optimum Risk fund has annualised targeted volatility of 7% to 9% and is aimed at investors looking to part with cash on a medium- to long-term basis. The fund is expected to return in the region of CPI plus 3.5%.
For shorter-term investors, capital preservation is the priority on the £4.5m Reduced Risk vehicle, with an annualised return target in the region of CPI plus 2%. Volatility will be between 4% and 6%.
Minimum investment into the funds is £5,000. The AMC is 1.35% and the initial charge is 5%. Commission is by negotiation.