Waverton launches Real Asset Fund

Waverton Investment Management announces the launch of its Real Assets Fund.

The fund was initially conceived to further develop the Waverton Managed Portfolio Service offering but is clearly appealing to a broader audience.

The Waverton Real Assets Fund will target a return of CPI+4% over the medium to longer term with a lower volatility than equity markets. It will be a daily dealing UCITS vehicle, domiciled in Ireland and managed by James Mee and Luke Hyde-Smith.

Waverton has been investing in Real Assets since 2010 and believes they have a place in a diversified multi-asset portfolio. The team will look to generate equity-like returns by investing in asset-backed businesses and cash flows, and believes that the large and growing universe of real assets offers sufficient opportunity to construct a diversified portfolio in a UCITS vehicle. The fund seeks to generate return from fundamentally different sources to equity and bond markets; looking to harvest risk premiums as opposed to equity beta or fixed income duration.

The fund will invest in five broad real asset classes:- Property, Infrastructure, Asset Finance, Commodities and Specialist Lending. The investments will predominantly be backed by tangible assets, often with some level of inflation linkage to the cash flows.

Idea generation will come from fundamental, bottom-up research and analysis, and the portfolio will have a top-down overlay, principally driven by the Waverton Asset Allocation Committee. The combination of the bottom-up and top-down processes will inform the managers as to their overall allocations.

Waverton Real Asset Fund Managers James Mee and Luke Hyde-Smith said: “Waverton has established an in-house proprietary universe from which to select appropriate strategies which we expect to grow over time and a research process that allows us to identify new opportunities as they emerge. The assets we select should provide predictable and, in many cases, inflation-linked cash flows, as well as effective diversification. We are currently finding attractive opportunities in all of the real asset types within our universe.”

Charles Scott Plummer, Head of Funds, Waverton Investment Management said: “We’ve had great interest in this launch. Within an investment environment characterised by accommodative monetary policy, moderate global growth and an uncertain inflationary outlook, an allocation to Real Assets appears an attractive proposition for investors.”

Risk Warning

Investors should be aware that the value of their investment may fall as well as rise. You may not get back your initial investment. Capital security is not guaranteed.

Where Waverton’s advice is given it is restricted to discretionary investment management services. We do not provide advice on the use of tax or financial products (even if the service which we are managing is held within such a product) or non-discretionary investment. 

A copy of the Waverton Real Asset Fund’s Prospectus and Key Investor Information Document (KIID) are available from Waverton or the administrator. Details can be found on our website: www.waverton.co.uk/investment-funds/fund/waverton-real-assets-fund