Royal London Asset Management (RLAM) has launched a multi-asset fund for Trevor Greetham, which aims to offer some upside market participation and lower downside risk.
The fund offers exposure to UK and overseas equities, commodities, bonds, money market instruments, as well as active and passive RLAM funds and exchange-traded funds.
Greetham is tasked with producing an annualised total return of 4% over cash, defined as the Sterling Overnight Index Average, over rolling five-year periods. He plans to do this by using two investment strategies.
The first aims to generate returns from market trends and reduces exposure to riskier assets during turbulent periods. Meanwhile, the second focuses on tactical asset allocation to take advantage of opportunities that arise.
Greetham noted we are currently experiencing the second longest economic expansion in modern US history and recession risks are starting to emerge. This means it is a good time to consider a portfolio’s resilience to negative shocks.
'Mast is designed to participate in stock markets while they are trending higher, but follows a disciplined approach that also seeks to generate returns when conditions are more difficult,' he added.
Greetham and his team of eight manage approximately £65 billion worth of assets, including RLAM's Governed Portfolios and Global Multi Asset Portfolios.