Investec Asset Management launches total return multi-asset strategy for Australian market
Investec Asset Management yesterday announced the broadening of its fund range with the launch of a dedicated total return multi-asset strategy tailored to Australian institutional investors.
The Investec Diversified Growth (Australian) strategy will be managed as part of Investec Asset Management’s successful range of global multi-asset strategies. Michael Spinks and Philip Saunders, co-managers of the fund, will be supported by the 24-strong multi-asset team, and backed by Investec’s expert in-house investment capabilities.
The Investec Diversified Growth (Australian) strategy is powered by one consistent investment process, centring on dynamic allocation across a globally diverse range of asset classes grouped together into three baskets categorised by behaviour rather than labels; Growth, Defensive and Uncorrelated, including equities, fixed income, currencies, commodities, infrastructure and broader alternative assets. Taking a flexible approach to asset allocation, exposure to each asset class is achieved through a combination of Investec’s in-house funds, passive funds and direct investments.
Domiciled in Australia, the strategy aims to provide real returns of Australian CPI+5% with half the volatility of Global Equities.
Justin Cowper, Country Head, Australia, Investec Asset Management, said: “The launch of our dedicated strategy, in an Australian domiciled unit trust, is a natural development in the evolution of our business in Australia and helps to open up this opportunity to a wider investor base.
“Increasingly institutional investors are looking for a standalone multi-asset investment solution that can fit within a broader investment portfolio, without overpowering the overall investment strategy. We believe this solution is best met by investment managers with a global mind-set and investment platform, who are able to utilise their expertise across a broad range of asset classes with the aim of delivering a consistent outcome.
“In recent years we have seen increasing demand from our clients globally for diversified growth strategies and have already won a number of segregated mandates. Increasingly, we believe that they will be a solution for investors globally in the future.
“Australia is currently faced with a low interest rate, low inflation environment, leading institutional investors to question the source of future returns. Our Diversified Growth Fund targets a return of Australian CPI+5% over a rolling five year period with half the risk of global equities, which could make it a suitable addition to a liquid alternative portfolio or a tool for de-risking an equity allocation.”
