Flows into the absolute return fund launched by Invesco Perpetual in September have gathered pace over the past month.
The Global Targeted Returns fund held £46 million of assets at the end of November, but had swelled to £171 million by the end of the year.
Co-manager David Millar told Wealth Manager that flows into the fund had been ‘better than we probably expected’ so far. ‘Clearly there is still demand for the multi-asset class overall, and recent market turbulence supports that.’
Performance has been strong too, with the fund having returned 5.1% since inception compared with an average of 2.6% from its IMA Targeted Absolute Return sector through the same period.
That is close to the fund’s full annualised target of 5% above three-month Libor, but Millar (pictured) insisted it was not being achieving by taking on too much risk. ‘We spend as much time looking at how we diversify risk as looking at new investment ideas.’
The team has introduced two new positions to the fund in recent weeks: it has bet on UK gilts relative to German Bunds, and on UK equities relative to Swiss equities.
Invesco launched the fund for Millar, Dave Jubb and Richard Batty, all recruited from Standard Life Investments where they were senior managers on the £20 billion Global Absolute Return Strategies (Gars) fund.