Armstrong IM launches flagship multi-asset fund
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Ana Cukic Armstrong and Patrick Armstrong are preparing to launch the first product from Armstrong Investment Managers (AIM), their new multi-asset boutique.
The start-up company’s flagship offering is the Diversified Dynamic Solutions (DDS) fund. A second Ucits III product is planned by the year-end.
The Dublin-domiciled fund uses a combination of top-down and bottom-up research within a global, unconstrained mandate.
The model portfolio is 11.8% net long in equities, with long bets on agriculture, Asia, and environmental stocks including water, and a short on the Spanish index.
It has 36% in corporate bonds, with a put option on the iBoxx index and a short on credit default swaps.
The fund’s largest position is in commodities, at 58% long and 26% short. There is also a 14.5% position in property, with the remainder in cash and currencies.
The fund targets an average annual total return of at least inflation plus 7% over a seven-year market cycle.
Patrick Armstrong says: “We have designed a whole concept based on opportunity. We are agnostic to asset class and type of vehicle and we will invest in other funds, different vehicle styles and regions.”
The aim is to create a product that bridges the gap between hedge funds and traditional asset classes by offering absolute returns, transparency and low fees.
“We are trying to offer the best of both worlds,” Armstrong adds.
The fund will be available from November 27, subject to final approval. It will be available to high net worth individuals and institutional investors. The minimum investment is €250,000 (£226,000).
