Investec Asset Management is launching a balanced managed strategy, a diversified hybrid fund blending both single and multi-manager offerin...

Investec Asset Management is launching a balanced managed strategy, a diversified hybrid fund blending both single and multi-manager offerings. As a hybrid the fund allows for broader diversification than is typically the case with single or multi manager funds, allowing for both in-house and third party specialist components. According to Investec Asset Management each approach has its merits, but neither gives an optimal approach. The principal weakness of single manager solutions has been an excessive dependence on the capabilities of a single investment institution whereas multi manager solutions have the advantage of breadth but at considerably higher cost, say Investec. The strategy for the new hybrid draws on a range of Investec Asset Management’s specialist capabilities across the main asset classes and in asset allocation blending these with a selected range of third party funds. The intention is to keep costs down while at the same time allowing appropriate scope for diversification by manager and asset category. The fund managers believe in a dynamic approach to asset allocation with a medium term cyclical focus, beta selection being the key to generating acceptable returns over the longer term. The strategy will also have a more pronounced global bias than most of its peers, according to the company, reflecting the managers’ belief that globalisation has made regional distinctions in equity markets increasingly anachronistic. Philip Saunders and Max King will be joint managers of the fund supported by Investec’s Multi Asset team.