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GTR v GARs: Invesco Perpetual unveils multi-asset fund for ex-SLI trio
by Dylan Lobo on Sep 09, 2013 at 00:01
To ensure the fund is properly diversified it will have exposure to three asset classes. The fund has positive exposure to European and US equities and a negative position in emerging markets. It also has limited exposure to corporate bonds and accesses government bonds mainly through derivatives.
One sector Millar is struggling to find decent ideas in at the moment is emerging market debt (EMD). ‘There are some value arguments for looking at EMD but we are concerned about flows which have all been one way for some time and you have to worry about countries in deficit if things get messy. However, we have started to think how we will re-enter the EMD market.’
Depth of talent
A striking difference between GTR and GARs is the size of their management teams, with the latter boasting around 30 to the former’s five.
This is not of concern to Millar as he highlights the strength of Invesco Perpetual’s wider team. ‘Being provided with the opportunity to bring our multi asset experience to a truly global firm such as Invesco Perpetual, and to sit amongst some of the best like-minded long-term fundamental thinkers is a privilege,' Millar said.
'As a team we believe that the way to achieve true diversification is to break away from the constraint of asset class labels and bring good investment ideas, which cross asset classes and geographies, together into a single diversified portfolio. This strategy, combined with the fact that we can draw on the immense intellectual capital of Invesco Perpetual gives us the ability to create something market leading.
Miller added: ‘There are five of us in this team and we are completely dedicated to this. We have been brought in here to build a multi-asset business here and we’ve got exactly what we need and will take the future in our stride.’
The multi-asset opportunity
Invesco Perpetual has spent the best part of a year honing the fund. Millar joined the firm at the start of the year, followed by Jubb and Batty in March. Shortly after, the trio established a model portfolio, which Millar said had produced ‘very good results’ over the last five months.
The Henley-based firm sees the fund launch as a crucial stage in its evolution, which has already seen it develop strong equity and fixed income franchises under Neil Woodford, and Paul Causer and Paul Read, respectively.
The firm’s chief investment officer Nick Mustoe underlined the opportunity: ‘As investors in the UK seek to grow their money without taking excessive levels of risk there has been consistent demand for multi asset investing, but there are very few managers doing it well.
'At Invesco Perpetual we have waited to find the right people, with the ability to create a market leading product in response to this demand. Building a leading multi asset capability is central to our vision for the Invesco Perpetual business.'
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