Miton launches Balanced Multi Asset Fund to sit alongside cautious & defensive offerings
14 February 2018
Asset management group Miton has added to its multi asset fund range with the launch of the LF Miton Balanced Multi Asset Fund.
The fund, managed by David Jane, Anthony Rayner and Henna Hemnani, will sit alongside Miton’s Defensive, Cautious and Cautious Monthly Income funds, and provide a higher risk option to the group’s portfolio of funds, which previously has been aimed at the near- or at-retirement investment market.
AIM-listed Miton said the globally invested, mixed asset fund will seek to deliver equity-like returns over the long term, with an ability to temper the downside.
The fund is designed to appeal to investors with a higher risk threshold than the other funds in the range providing a full suite of funds for investors appropriate to their appetite for risk.
The portfolio has around 70% allocation to equities, 20% to bonds and 10% in cash. The largest equity exposures will be to Japan, Europe and Asia.
As with the other Miton multi asset products, the fund will invest in baskets of individual securities rather than investing in other funds, which the fund manager said would help keep overall charges low.
The fund is unconstrained by benchmarks giving it the ability to temper downside risk by aggressively managing equity exposure.
David Jane, Miton multi asset fund manager (pictured), said: “We are firm believers that capital preservation should be prioritised alongside return generation and have created a solution which provides the flexibility to move aggressively out of equities in difficult market conditions. This will enable us to achieve much smoother long term results for investors.”
Anthony Rayner, Miton multi asset fund manager, said that the managers were “pragmatic investors” who are “looking at what’s in front of you rather than what’s in a text book”.
“Our particular skill is in identifying macro trends. Three quarters of the time risk is in the asset allocation. Then we look to decrease stock specific risk by analysing each stock’s contribution to risk. So, a stock’s volatility, correlation and liquidity will dictate its position in a fund.”
He added: “Our approach is to limit human biases, so we don’t meet with the CEOs or the companies we invest in, in order to limit those biases. And we buy a basket of stocks to limit our exposure – we are not looking at the exciting, in fact, the more boring the better.”
The fund sits within the IA Mixed Investment 40%-85% shares sector. The fund will have income and accumulation share classes – an F share class with an Annual Management Charge (AMC) of 0.50% (OCF capped at 1%) with a minimum investment of £100,000 and a B share class with an AMC of 0.75% (OCF capped at 1.5%) with a minimum investment of £1,000.
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Source: FE Analytics as at 31/12/2017, Sterling Class B Accumulation shares/units, net income reinvested, mid to mid (bid to bid for MI Miton Cautious Monthly Income) on a monthly basis. Tenure dates: MI Miton Cautious Monthly Income Fund – 09/06/2011; LF Miton Cautious Multi Asset & LF Miton Defensive Multi Asset Funds – 09/06/2014.
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