Wednesday, 29 March 2017
Last updated 12 hours ago
Oct 24 2012 | 8:17am ET
London-based investment boutique Newscape Capital Group has launched its second UCITS fund, a multi-asset strategy targeting 7% annualized returns.
The Newscape Diversified Growth Fund employs the same portfolio construction and risk management processes the firm has been running for wealth managers and corporate pensions since September 2009—the so-called Model Portfolio Service. But the fund invests in a broad universe of single stocks, bonds, currency and hedging instruments “over and above the unbundled funds proposition of the MPS.”
Richard Bonnor-Moris, who heads the MPS, will oversee portfolio construction and risk for the new fund while Charlie Kerr, head of fixed income, and Philippe Bonnefoy, CIO, will oversee specific bond and equity risk allocations as well as currency and hedging overlays within the fund.
Said Newscape CEO Stephen Decani in a statement: “The Diversified Growth Fund is a combination of the capabilities we have already deployed as a business, our collective investment experience and the things we continue to learn each day about markets and the challenges faced by investors.
“The MPS has been successful in the run up to retail distribution review because each risk portfolio focuses on very controlled risk management and loss mitigation as opposed to chasing returns. Bringing this process together with strong single stock selection, currency management and dynamic hedging, we hope to create a compelling proposition in a single collective investment that is increasingly attractive at an institutional level.”
Luke Burdess, head of sales at Newscape, described the product as having a “balanced plus” mandate and says it is targeted at fund allocators, discretionary managers and pension funds.
Said Burdess in a statement: “The strategy is based on a rigorous quantitative and qualitative portfolio construction process with a high degree of focus on risk management, in particular controlling maximum loss over any period while targeting consistent levels of growth.”
The Diversified Growth Fund joins the Newscape Strategic Bond Fund, launched in November 2010, on Newscape’s UCITS platform. The firm expects to add additional strategies in the coming months.