Baring Asset Management (Barings) plans to launch the Baring Asia Dynamic Asset Allocation Fund, on 31 May. The new fund will aim to achieve Asian equity-like returns with less than Asian equity volatility, over a long-term investment horizon.
The Fund will invest across multiple asset classes, including equities, bonds, currencies, commodities (indirect exposure), derivatives, money market instruments, property (indirect exposure) and/or cash with no formal limits on asset class, sectors or regions. Whilst the fund will generally have a higher proportion of investments in Asian markets (both developed and emerging markets), in certain market conditions the Fund may significantly reduce Asian exposure and invest a higher proportion outside Asia in order to manage volatility and market risk.
The fund will be run by Khiem Do (pictured), Head of Asian Multi Asset and a member of Barings’ successful multi-asset team, who have been managing dynamic asset allocation strategies since 2002. The team manages over GBP5.8 billion1 in dynamic asset allocation products for retail and institutional clients. This includes the flagship institutional product, the Baring Dynamic Asset Allocation Fund, which has grown to over GBP4.7bn in assets under management (as at 30 April 2012) since launching in January 2007, the retail product and DC solution, the Baring Multi Asset Fund, and the Baring Dynamic Emerging Markets Fund.
Head of Asian Multi Asset, Khiem Do, says: “At Barings we have a long history of investing in the Asian markets. We were one of the first asset managers to open an investment office in Hong Kong in 1973 and we continue to believe that Asian markets offer some of the best long-term investment returns due to the region’s favourable demographics, currency appreciation, high productivity and growing domestic demand.
“Our multi-asset team at Barings has a decade of experience of managing multi asset products. We argue that it is possible to achieve Asian equity-like returns over the long-term with less volatility than Asian equities by actively managing exposure to both growth and defensive assets. The flexibility we have when constructing the investment portfolio means that at times of uncertainty, we have the ability to increase our tactical exposure to lower risk assets such as cash, gold and ‘safe haven’ government bonds, with the aim of preserving capital over the long-term investment horizon.
“We believe the Baring Asia Dynamic Asset Allocation Fund will appeal to long-term investors seeking a less volatile way of investing in these exciting high growth markets.”
The management of the fund will be underpinned by the multi-asset team’s tried and tested process of identifying the best asset classes from a top-down perspective and taking a flexible approach to asset allocation.