London-based alternative investment manager Frontier Investment Management has launched a new fund for investors with a lower risk appetite called—what else?—the Cautious Fund.
The IFDS Frontier MAP Cautious Fund, to give it its full name, will launch on February 9. The vehicle incorporates Frontier’s eight asset class portfolio.
The launch of the fund follows the success of the IFDS Frontier MAP Balanced Fund, launched in 2009, which has raised over £80 million from a range of leading financial intermediaries in the U.K.
The asset allocation of the Cautious Fund has been set to offer investors lower volatility returns than the Balanced Fund. In particular, the proportion of the fund invested in fixed income asset classes will be significantly increased. This asset allocation will also allow the fund to provide a yield to investors and accordingly both income and accumulation share classes are available.
The Cautious fund will be managed by Marc-Phillipe Davies, head of investments at Frontier, and will invest in global equities, global fixed income, emerging equities, emerging bonds, global real estate, commodities, hedge funds and managed futures. The fund will be available to investors on most major wraps and platforms, as well as directly through IFDS Managers Ltd.
Said Andrew Cracknell, head of intermediary business at Frontier Investment Management: “The new fund has been launched following demand from investors in our existing funds and we also hope that the more cautious asset allocation will open the door to new businesses with a lower appetite for risk or who prefer to work with a range of funds structured for clients of varying risk profiles.”
Frontier Investment Management was founded in 2004 by Michael Azlen, formerly of the New York-based alternative investment firm Asset Alliance. As of April 2010, its Cayman-based Multi Asset Platform Fund had AUM of US$394 million.