Way Fund Managers has unveiled a new fund that will primarily invest in exchange-traded funds (ETFs) and follow an absolute return mandate.
The Global Trend fund is launched under Way’s Elite third-party service and will be run by Chris Moore of Spixworth Asset Management. It will hold a maximum of 20 ETFs to diversify its portfolio and will invest on a trend-following strategy.
Part of this approach will see the fund able to invest in up to five developed equity markets, five emerging equity markets, five bond markets and five real asset classes including property and commodities.
It can hold 100% of its portfolio in one asset class or cash. The manager also has the option of investing in transferrable securities, other regulated and unregulated collective investment schemes, deposits and money market instruments.
“The problem most investors face is that most investment strategies not only track stockmarkets on the way up, but also on the way down,” the product’s launch factsheet says.
“Few fund managers even try and attempt to time the markets and clients are left with holding volatile portfolios. The Global Trend fund provides an objective method to timing the markets, whilst giving the fund manager additional subjectivity to outperform.”
The Global Trend fund, which holds about £30m at launch, requires a minimum investment of £1,000 and has a 6% initial fee with an annual management charge of 1.4%.