UK - Barclays Global Investors (BGI) has launched the BGI UK Equity Ascent Asset Allocation Fund.
The fund operates by taking positive and negative positions on 30 different equity, bond and currency markets. The fund aims to achieve a 15% p.a. outperformance above its benchmark and a standard deviation (volatility) of active returns of 20% p.a.
Benchmarked to the FTSE 100, the fund is a pooled vehicle registered in Dublin and is open to institutional investors.
Matthew Annable, head of active equity strategies said: “Providing UK equity and cash benchmarked asset allocation funds allows BGI to deliver performance to our clients from our global asset allocation forecasting model in a much more efficient way than using traditional asset allocation techniques.
“The new product is for clients who do not have any portfolio cash, or do not wish to tie up any portfolio cash in an active strategy. Such clients are, however, likely to have a pool of UK equities and a part of these could be reallocated to the UK Equity product.”
The BGI UK Equity Ascent Asset Allocation Fund has been developed to act as a foil to the BGI Ascent Asset Allocation (AAA) Fund, launched in April 2001. The funds share the same portfolio construction model but differ in terms of benchmarks.
By Janet Du Chenne
Here are key takeaways from our 2019 Asset Allocation Outlook on how we are positioning asset allocation portfolios in light of our outlook for the global economy and markets.
This week's top stories included a Freedom of Information request revealing more than 100,000 savers could face six-figure tax bills as a result of GMP equalisation.
The Pearson Pension Plan has entered into a £500m pensioner buy-in with Legal & General (L&G) in the insurer's first deal of 2019.