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Caerus swaps Evercore for Mansard on £130m funds

by Rachael Revesz on Jan 15, 2013 at 14:24

Caerus swaps Evercore for Mansard on £130m funds

Adviser network Caerus has handed fund managers Mansard Capital the mandate to run its £130 million Dynamically Rebalanced Portfolio funds, arguing the move will cut costs.

Mansard will take over the four funds from Evercore Pan Asset, and change the investment approach from one employing exchange-traded funds (ETFs) to one using index trackers.

Caerus said the switch would cut total expense ratios by an average of 0.2% to around 0.25% and reduce tracking error. It added the funds' asset allocation and risk-targeted approach would remain the same.

Caerus investment director Ronan Kearney (pictured) said: ‘The move from ETFs to indices enables Caerus to provide its clients with a product that offers exceptional value and performance.'

1 comment so far. Why not have your say?

Andrew Whiteley

Jan 16, 2013 at 10:09

"swaps" being the operative word....

I trust that the network members will be provided with a better explanation of the way that the new managers are able to invest at such low cost. According to trustnet the new underlying structure is effectively a "swap" (i.e. one big synthetic ETF) with all the ensuing counterparty risk that that brings......and I quote...

"The investment objective of the Fund aims to deliver long term capital growth from a broadly cautious approach to investing whilst ensuring that the overall volatility of the portfolio remains within its set volatility band. The Fund will seek to achieve its cautious objective through investment predominantly in a single derivative contract (“Swap”). The Fund will therefore receive a return linked to the performance of the basket of assets which underlie the Swap. The basket will contain assets that enable the return to be linked to the performance of equities, bonds and cash."

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