SVM expands fund of funds offering

SVM Asset Management, the Edinburgh based independent fund management group, will launch the SVM Cautious Managed and SVM Balanced Managed Funds on 15 May 2008.

The launches will expand SVM's multi-asset fund of fund range to provide access to a proven fund of funds team, in a way which will appeal to more cautious investors in current market conditions.

SVM Cautious Managed Fund and SVM Balanced Managed Fund will hold 40% and 15% respectively in an actively managed portfolio of cash and bonds. The balance of the portfolios will be invested in a diversified international portfolio of specialist funds, including private equity, property and hedge funds, in order to exploit opportunities for long-term growth, similar to the successful SVM Global Opportunities Fund.

The SVM Global Opportunities Fund has returned 14.8% since launch on 15 May 2006 compared to 6.3% for the FTSE World index, and holds an ‘AA' S&P rating and an ‘A' rating from OBSR. SVM's flagship global fund of funds, SVM Global Fund plc was launched in 1991 and has delivered an annualised return of 15.6%.

SVM's fund of funds approach is to look for proven managers with a pragmatic approach who are based in the locality in which they invest. SVM selects managers incentivised for absolute performance with no constraints, who hold stakes in their own fund. SVM invests in a combination of growth and defensive funds in order to generate smoother returns in both rising and falling markets.

The new funds will be managed by SVM's managing director Colin McLean and co-founder Donald Robertson, who together manage the SVM Global Opportunities and SVM Global Funds.

Donald Robertson, fund manager, SVM Asset Management, says: "Our truly multi-asset approach, which includes alternative investments, gives us the ability to generate returns which are not reliant on the market growth. With market volatility set to continue for the foreseeable future, we believe this is the best way to protect returns.

"Although the market shake up has been unsettling for investors it has created a wealth of investment opportunity and increased our capacity in the multi-asset fund of funds sector. The majority of our global investments are in closed ended funds, many of which now stand at a substantial discount to their true value, providing excellent upside potential."

Mark Noble, Head of Retail Sales and Marketing, SVM Asset Management, says: "The cautious and balanced managed sectors have been popular with investors, particular in light of the market volatility experienced in recent months, however performance of many funds in these sectors has been mediocre at best. We are confident that our proven track record in managing multi-asset fund of funds will enable us to deliver an attractive risk/return profile for investors.

"These products will make the most of our extensive experience in selecting successful managers, while expanding our product offering to provide investors with options to suit all market conditions and risk requirements."