Insight chooses non-Ucits model for Target fund

Managed by Patrick Armstrong and Ana Cukic-Munro, the portfolio can invest in equities, fixed interest, property, money market instruments and hedge funds. Additionally it can use structured products and derivatives.

The amount invested in each asset class has an upper limit. For instance, up to 60% of the fund can be invested in equities and 70% in fixed interest securities. However, there are no minimum limits, meaning that, in theory, all assets could be switched out of equities in a bear market.

The fund was launched on February 18 with approximately £1m invested by retail clients from Insight Investment’s wealth management service. The plan is to market the fund to targeted intermediaries from May, and then to the whole intermediary market, starting in September.

Armstrong says Insight considered offering the portfolio as a Ucits III fund, but restrictions on hedge fund investments meant that it chose instead to structure the product as a Nurs under its Funds of Funds ICVC Oeic.

The fund is currently invested 27% in equities, 20% in directional bonds, 25% in conventional bonds, 2% in Asian properties and the rest in cash-based instruments. No assets have been invested in hedge funds as yet.

The initial charge for the fund is 5.25% with a 1.4% annual management fee. Minimum investment is £5,000 or £250 per month. The fund is not available to Isa and Pep investors.