Insight’s diversified target return fund marks 2 years solid performance

The Insight Investment Diversified Target Return Fund (DTR) is celebrating its second anniversary with impressive performance figures combined with exceptionally low volatility.

Since launch, the multi-asset, multi-region absolute return fund has delivered a 16.1% return which is 8.1% ahead of a cash return of 8.0%. DTR’s multi-asset, multi-region investment approach, coupled with an emphasis on risk control, means that it has achieved its positive on-target performance with an annualised volatility of just 3.5% – lower than Government bonds.

Insight Diversified Target Return Fund – key milestones

Feb ’05 Insight Investment launches DTR fund
Mar ’06 Receives ‘A’ rating from OBSR
Apr ’06 DTR among funds offered through Legal & General’s ‘Portfolio Plus’ Sipp
Sep ’06 Converts to UCITS III structure
Sep ’06 Receives ‘A’ rating from Standard & Poor’s
Oct ’06 Following the success of DTR, Euro-denominated sister fund, the Global Diversified Return Fund (GDR), is launched
Nov ’06 DTR accessible through Engage Mutual’s Protected Investment Bond
Jan ’07 DTR accessible through Engage Mutual’s Progressive Bond
Feb ’07 DTR among funds offered through Legal & General’s ‘Portfolio Plus’ Bond

The £94m DTR fund was launched on 18 February 2005 and is part of Insight’s multi-manager fund range, managed by Dr. Ana Cukic-Munro and Patrick Armstrong. It has the objective of delivering positive returns on an annual basis with the prospect of long-term growth commensurate with investment in equities. The fund’s UCITS III structure allows its managers the flexibility to invest in shares in funds which in turn are invested in equities, fixed interest, cash, commodities, property, structured products and derivatives in order to reduce volatility through investment market cycles.

Gordon Phillips, head of retail, Insight Investment said, “We launched DTR two years ago in response to investor demand as the first multi-asset, multi-region absolute return-orientated fund of funds available to UK investors. The market continues to evolve and our strong track record shows that DTR continues to give investors the best of both worlds – solid performance with relatively low risk. We are delighted to have been at the fore of absolute return fund development and we will continue to design solutions that aim to meet our clients’ needs.”

Dr Ana-Cukic Munro, head of portfolio strategy and construction and co-manager of DTR said, “Our research shows that the most efficient way to achieve absolute returns is by combining a diversified range of traditional and non-traditional asset classes, such as commodities, property, equities, and bonds across multiple regions. Unlike the majority of funds in the cautious managed sector, DTR has not relied largely on equities to deliver excess performance. Instead, the Fund has harnessed multiple drivers of return, including exposure to agricultural commodities and Asian property. Consequently, since launch DTR has realised returns twice as high as cash or government bonds, with the lowest beta to the FTSE All Share of any fund in the cautious managed sector .”

Patrick Armstrong, head of fund and manager selection and co-manager of DTR said, “We attribute DTR’s strong performance and low volatility to its highly diversified investment approach, and we believe that investing in funds managed by great managers across a broad range of asset classes is crucial to the efficient management of this type of portfolio.“

The minimum investment in the Insight Investment Diversified Target Return Fund is £5,000 lump sum or £250 a month.