Tom Caddick, head of fund management, global multi-manager, at Santander Asset Management, will use both active and passive managed investments for his new range of
multi-manager funds that launched this week.
Some of the passive funds he chose to include are the Vanguard UK Government Bond Fund, the Blackrock Emerging Market Equity Tracker, the iShares MSCI Europe ex UK and the Legal & General Japan Index Fund.
The largest allocation within the passive part of the portfolio is to passive funds, followed by exchange-traded funds (ETFs). Meanwhile, derivative usage on the portfolio will be small. While passive strategies will be incorporated in all portfolios, active funds will still make up the majority.
Caddick recently told Funds Europe that there is a case for using passive investment for easy tactical access and as a core part of portfolios in inefficient markets.
“Even if you look at some of the more efficient markets, some of the sector rotation decisions and some of the stock drivers that can come in to play still means that there’s plenty of alpha to be had,” Caddick said on at a Funds Europe ETF roundtable recently.
Caddick’s new funds will have differentiated risk targets aimed to suit varying investor attitudes to risk in the medium and long term.
The funds can invest across core global asset classes, including equities, bonds, properties and alternatives.
They carry an annual management charge of 0.40%, plus an ongoing charge that is capped at 0.99%, and will be available via platforms.
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