A personal finance investing book has led to the launch of a Ucits fund following reader demand for a product that applied its principles.
VT PEF Global Multi-Asset fund launched on Monday following the methodology of How to Own the World, a book published by former banker Andrew Craig in 2012.
The fund invests in over 24 different assets globally including: EU, UK, Asian, American and emerging market shares, a mixture of fixed income assets, gold, agriculture and energy commodities, real estate and infrastructure.
To minimise costs the fund only trades once a month on a fixed trading day or if the value of assets increases or decreases 5 per cent or more. The fund uses trend following analysis to decide whether to hold assets or switch into cash each month.
Craig, who worked with Cass Business School professors Andrew Clare and Steven Thomas and their colleague Dr James Seaton on the Ucits product, says he got reader requests asking if he could invest their money for them.
“People wanted a way of investing in all the main asset classes and geographical regions – as per the message in the book – but in one place and as inexpensively and tax efficiently as possible,” says Craig, who previously worked for UBS, Credit Agricole and SEB.
The fund has an AMC of 0.9 per cent and projected OCF of 1.14 per cent. Minimum lump sum investment starts at £100 or £25 monthly.
Backtested annual performance going back to the start of 2001 shows the strategy would have delivered a 7.2 per cent annualised return after costs, with its worst annual performance -6.6 per cent in 2008.