London-based Psigma Investment Management is launching a multi-strategy fund investing in investment trusts, hedge fund of funds and exchange-traded funds next week, it said.

Tom Becket, manager of the PSigma Balanced Managed Fund of Funds, said the portfolio will begin with a total of about 40% in equities, skewed towards international markets. Becket added that he currently favors the healthcare sector because of its short-term defensive characteristics and longer-term growth potential and said the fund will invest in Polar Capital’s Healthcare Opportunities fund to gain exposure to the sector.

On the credit front, Becket said the current dislocation in the space is making for “fantastic long term opportunities” and he is optimistic about the attractive yields to maturity on investment grade financials bonds.

“We believe that the experiences of Northern Rock and Bear Stearns show that the Bank of England and the U.S. Treasury have decreed the banks as ‘sacrosanct’, so there is virtually no chance of bond holders not getting back their capital invested,” he said.

The fund charges a 1.5% management fee and its minimum investment requirement is £10,000 (US$$17,769).