The main risks for the fund are focused around asset allocation and fund selection. However, while the managers have the flexibility to move away from the tactical asset allocation decisions made at group level, there is strong governance to oversee this.
The fund can invest up to 10 per cent in a single holding – however, the managers prefer to cap this around 7 per cent. Turnover of underlying funds is around 20 per cent a year.
The fund has returned 78.5 per cent to investors since its launch almost a decade ago, compared with a return of 71.6 per cent for the average fund in the IA Mixed Investments 20 per cent to 60 per cent shares sector. The fund has an ongoing charge of 1.04 per cent with a yield of 2.7 per cent.
This is a rock-solid offering with income generation at the centre of its process. The fund is designed to be consistent in every way and this has fed through to performance, giving investors a welcome sense of security that no stone has been left unturned.
Darius McDermott is managing director of FundCalibre
