SWIP enters fund of funds market with two new funds

Scottish Widows Investment Partnership (SWIP) has entered the fund of funds market with the launch of two new funds: the SWIP Multi-Manager Diversity fund and SWIP Multi-Manager Select Boutiques fund.

The two unfettered funds will be managed by SWIP's highly regarded multi-manager team led by Mark Harries and Simon Wood. The funds will provide investors with access to a range of specialist investment funds and will be managed with an absolute return bias.

The SWIP Multi-Manager Diversity Fund will invest in a portfolio of funds which provide access to a wide range of asset classes and geographic regions. Asset classes will include equities, bonds, cash, property and a range of alternative assets including fund of hedge funds and commodities. The fund aims to achieve long-term capital growth ahead of inflation1.

The SWIP Multi-Manager Select Boutiques Fund aims to achieve long-term capital growth through investment in a portfolio of funds with exposure to UK and international equity markets. The majority of funds within the portfolio will be managed with an absolute return mindset by specialist investment management companies.

Bernard Henshall, Head of Multi-Manager Distribution at SWIP, comments: "The launch of the two funds is an important step in the development of SWIP's multi-manager business. Fund of funds is an area that is seeing high levels of interest from investors who face the difficulty of monitoring and analysing large numbers of funds. As fund analysis and asset allocation can be outsourced to full-time specialists, multi manager funds free-up time which advisers can use more profitably with clients.

" We have chosen to launch into the fund of funds market to meet demand for increased diversification and for funds which aim to deliver real returns in any market condition. The funds are able to invest in the broadest range of assets from specialist fund managers and the balance of assets makes the multi-manager funds a real alternative to a typical balanced or cautious managed fund."