Baring AM launches Euro Dynamic Asset Allocation fund

Baring Asset Management has launched the Baring Euro Dynamic Asset Allocation (EDAA) fund.

The fund follows the same strategy as other Barings Multi Asset Funds, aiming to generate equity like returns for European investors, with less volatility than equities, over the medium to long term through the use of tactical asset allocation.

It targets a return of Euribor +3%, which Barings’ research shows equates to long term equity returns. The manager seeks to achieve this by dynamically allocating across a range of global asset classes including equities, fixed income, currencies, cash and indirectly through carefully selected alternatives such as gold and property.

The fund is managed by Christopher Mahon with Hartwig Kos as the back-up manager. Both are directors in the Barings’ multi-asset team, which has been managing dynamic asset allocation strategies since 2002.

The team manages over £8.6bn 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 £6.5bn in assets under management (as at 28 February 2013) since its launch in January 2007. The stable of products also includes the retail product and DC solution, the Baring Multi Asset Fund, the Global Dynamic Asset Allocation Fund for US investors and the most recent additions; the Baring Asia Dynamic Asset Allocation Fund and the Baring Dynamic Emerging Market Fund.

“The Euro Dynamic Asset Allocation Fund is designed to meet the specific needs of European investors seeking growth when it’s available but to whom capital preservation in volatile markets is also a priority. With markets remaining volatile and the wider economic environment still uncertain, a multi asset approach has proved to be a prudent investment strategy. Our other multi asset products have been very effective at capturing growth and managing volatility, and we have high expectations for this new addition to our range,” Mahon said.

In terms of investment themes, Barings believes that there will be a slow global recovery. The banking system is stabilising, with Basel III a clear positive and US and UK credit cycles set to turn upwards. Barings believes that there are under-recognised growth themes in China and Asia from which investors can profit. Barings also remains supportive of credit but favours high yield over investment grade.

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