UK - Henderson Global Investors has launched a defined contribution (DC) version of its Diversified Growth fund.
The daily priced fund aims to return 4% above its three month Libor cash benchmark (over rolling three years) with low volatility through dynamic asset allocation, diversified portfolio construction and efficient implementation of investment ideas.
The fund is managed by head of multi asset funds and deputy head of equities, Bill McQuaker, and Chris Paine, director, asset allocation. It is a multi-asset portfolio which has a dynamic approach to asset allocation and the ability to invest in a broad range of both traditional and alternative asset classes including equities, bonds and property as well as hedge funds, private equity, commodities, currency and cash.
The strategy, which was first implemented in July 2007 on a segregated basis for the Henderson Group Pension Scheme, has returned 6.5% per annum since inception with significantly lower volatility than that delivered by global equities, Henderson said.
Director of global distribution Arno Kitts said: "Last year we launched a pooled fund for defined benefit schemes to enable institutional investors access to a wide variety of assets including true alternatives. We now want to give DC members the opportunity to invest in a fund that offers equity-like returns with bond-like volatility that has exposure to alternatives but with daily pricing.
"This strategy is a powerful partnership of quantitative and qualitative analysis where the dynamic approach to asset allocation allows the fund managers to swiftly incorporate changes to the portfolio as the investment environment changes. The managers are able to blend different asset classes in order to construct a portfolio with the aim of delivering consistent, dependable performance for its investors".
The fund will also be added to the investment choices for Henderson's own pension scheme members.
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