Investment Solutions launches two passive funds
Investment Solutions, South Africa’s largest multi-manager, today announced it has expanded its portfolio line-up with the launch of low cost passive unit trusts, in partnership with Coreshares.
Investment Solutions Conservative Passive Unit Trust and Investment Solutions Aggressive Passive Unit Trust, which commenced trading on Friday 19 February 2016 and are passively managed, multi asset class portfolios that each aim to deliver returns above its inflation linked return objective.
“Managed in accordance with the prudential investment guidelines applicable to retirement funds with a predetermined tolerance for equities,” Gareth Johnson, Head of Retail Investment at Investment Solutions, explains that they will use a calculated strategic asset allocation to identify the asset allocation, which targets a specified level of expected return at the lowest possible risk.”
According to Johnson the characteristics of the Investment Solutions Conservative Passive Unit Trust include:
· Limited equity exposure (up to 40 per cent)
· Suggested investment horizon of three years
· Benchmark: CPI +3 per cent over a rolling three-year period
The following are characteristics of the Investment Solutions Aggressive Passive Unit Trust:
· High equity exposure (up to 75 per cent)
· Suggested investment horizon of five years
· Benchmark: CPI + 5 per cent over a rolling three-year period.
“In line with RDR and Pension Fund Reform, we believe that there is strong demand for the Investment Solutions Conservative Passive Unit Trust and the Investment Solutions Aggressive Passive Unit Trust, as it provides customers with a cost-effective option to gain exposure to a diversified portfolio with low investment fees and no performance fees,” says Gareth Stobie, Managing Director of Coreshares.
“We are launching our passive unit trusts to optimise the relationship between fees, returns, diversification and risk in our clients’ portfolios,” concludes Johnson.
