Rathbone Investment Management International, the discretionary fund manager, has launched a managed multi-asset class funds service, targeted at the offshore market. The funds are described as offering a targeted risk and return. They provide exposure to alternative investments including hedge funds, structured products and property. According to Jonathan Giles, managing director, the recent falls in global bond and equity markets has focused trustees and private clients alike on balancing downside risk with the need for longer-term capital appreciation. “The funds aim to generate positive returns whilst reducing risk," he told WealthBriefing. David Coombs, lead manager of the Strategies Fund service, added: “Over-diversification can lead to mediocre returns and in order to construct the most efficient portfolios therefore we will only invest in asset classes we believe will meet our risk and return objectives.” The Strategies Funds service invests via third party funds on an open-architecture basis aiming to identify those funds that have demonstrated a consistent out-performance over their peers and their relevant benchmarks. There are two options available via Rathbone’s discretionary portfolio management service. The first, capital preservation, targets an absolute return objective of cash plus 2 per cent. The second, managed growth, offers an equity-type return of inflation plus 5 per cent with lower risk. The funds will be listed on the Channel Islands Stock Exchange. WealthBriefing recently reported an increasing multi-manager presence in high net worth portfolios. Cerulli Associates forecasts that global growth of multi-manager sales will continue to outstrip conventional funds.