This fund falls into the growing group of target return funds; it was launched in 2015 and will pass its three-year track record in June. The team is based globally in in Singapore, Sydney and London and have managed similar strategies for 20 years with assets under management now exceeding $20 billion. The fund itself has less than £100 million invested.
One of the early questions I had was whether the holy grail of investing existed (i.e. positive returns and low volatility). Andrew explained that you cannot control volatility and target a return. It is one or the other. He also believes that returns should be targeted over a 5-year period and anything less is too short. There will be periods where the market returns are not there, and this will reduce potential returns. Having the ability to pull levers to achieve returns is important. As an example, volatility can be as high as 12% but averages around 6%…..read more