Cologne-based fund of fund specialist Sauren has targeted the passive fund industry with a ten year challenge, in a bid to highlight the merits of active management.
Sauren claims that its Global Balanced Fund of Fund has the capacity to outperform a similar passive vehicle over the next ten years.
The firm is now looking for a suitable passive investment fund, which would also have a similar portfolio to Sauren’s Global Balanced Fund, including 25% MSCI World, 25% EuroStoxx, 25% REXP and 25% Corporate Bonds.
Sauren’s “Active versus Passive” challenge outlines that whichever party looses the bid will have to donate €1m to a charitable cause selected by the winning party.
“Our Sauren Global Growth fund has illustrated that we are capable of delivering an annual alpha of 2% after fees. When it comes to defensive strategies, I believe our multi-asset strategies have clear advantages to more traditional strategies” argues the firm’s founder Eckhard Sauren.