The launch portfolio for the Balanced Managed Fund of Funds from London-based investment manager PSigma has as its objective long-term capital growth and total return; it will invest in collective investment schemes, unit trusts, OEICs, investment trusts, funds of hedge funds and exchange traded funds.

Tom Becket, manager of the fund, said: “We shall be maintaining our current defensive stance in our asset allocation, as we have continuing fears over the outlook for the global economy and we view the outlook for equity markets as finely balanced. We believe that within credit markets the huge dislocation now presents fantastic long term opportunities. We are particularly enthused about the attractive yields to maturity that can be found on investment grade financials bonds, which have been sold off by distressed sellers at a time when few were willing to buy them.”

John Howard-Smith, managing director of PSigma Investment Management, said: “The PSigma Balanced Managed Fund of Funds is an extension of the successful Wealth Management Solutions product, managed by and previously only available to private clients of PIM. We firmly believe that the new fund of funds will prove timely and popular in these volatile markets.”