Global investment house Deutsche Asset Management (DeAM) has launched the Deutsche Asset Management Life UK Alpha Fund for pension clients.
The fund, with an expected annual return of 4%, aims to outperform the FTSE All-Share Index over rolling three-year periods, and will be managed by Peter Lees, a senior member of DeAM’s UK 30-strong equity team.
Commenting on the return level, Lees said: “In the future we expect lower returns from all asset classes than we have seen in the last few years. Therefore an additional 4% alpha will be correspondingly more valuable”.
Alistair Morrison, chief executive officer at DeAM Life, said: “The UK Alpha Fund will be suitable only for long-term investors. The fund will have a concentrated portfolio of about 35 stocks. As a result, we expect much greater short-term volatility from this portfolio than from our more diversified +1% funds.”
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