Sarasin & Partners has launched two funds of funds, extending the investment process it runs for private clients into the wider market.
The two funds of funds comprise Sarasin Global Equity and , managed by a four-strong team under the leadership of Sam Jeffries, a partner at the firm. Oliver Tucker is co-manager, supported by Lucy Empson and David Vickers.
The Oeic funds, structured as non-Ucits retail schemes to provide investment flexibility, will be listed in the Investment Management Association (IMA) specialist sector, with both targeting long-term capital growth.
Sarasin said the portfolios will consist of between 15 and 25 underlying funds, with fund selection based on Sarasin’s proprietary bottom-up screening process. This is combined with the firm’s macroeconomic strategy to identify long-term trends and investment themes.
Jeffries said: ‘These two funds represent an extension of what we have been successfully providing to private clients for several years. As authorised investment funds they will now be available to both existing clients and the wider public in the UK.’
The funds have different risk profiles, with the global equity fund measured against a composite 50% MSCI All Countries World index and 50% MSCI All Countries World Index Sterling Hedged. The global diversified fund is measured against a composite 50% global equities, 40% government and corporate bonds and 10% cash.
In terms of the underlying funds, Global Equity’s holdings include Cartesian Enhanced Alpha for UK equity, Findlay Park American and GAM North American, Baring Select Europe and Polar Capital Japan. At the end of May, the fund was most heavily weighted to US equities, with a 51% allocation.
Underlying the Global Diversified fund is Threadneedle American Extended Alpha, and Findlay Park American for equities, LGIM All Stocks Gilt index and Schroder Long Dated Corporate Bond are key fixed income holdings. Bluecrest AllBlue and Third Point Offshore sit in its alternatives pool.
‘What we’ve been looking for are funds managed by experienced people,’ said Jeffries. ‘Key to all our funds are managers who are truly active in their allocation, who take positions away from the benchmarks.’
The retail share classes will have a 1.5% annual management charge and the institutional class will stand at 0.75%.