Appointment of Fidelity International as sub-investment manager

In February 2018, Ashburton Investments appointed FIL Pensions Management (“Fidelity”) as its investment advisor to Ashburton’s multi asset fund range, namely, Ashburton Investments SICAV - Global Defensive Fund, Global Balanced Fund and Global Growth Fund plus the Ashburton Replica Portfolio Limited – Sterling Asset Management Fund, Dollar Asset Management Fund and Euro Asset Management Fund. We’re pleased to report that this partnership is proving very successful. The Funds are seeing the benefits of enhanced global research and analysis, a more robust, investment process and improved efficiencies, which ultimately positions them to better deliver the performance.

To maximise the operational efficiencies of working with Fidelity, Ashburton plans to further formalise the partnership by appointing them as its sub-investment manager in respect of the aforementioned Funds. We expect this appointment to take place during July 2019.

In this partnership, Ashburton Investments retains overall responsibility for delivering investment performance across the multi asset fund range and is ultimately responsible for the top-down asset allocation, macro perspectives and investment views, as well as the definition of the investment mandate, parameters and risk limits of each of the multi asset funds. Fidelity brings its strength in global research and analysis, advises on security and component fund selection, and is responsible for the implementation of investment decisions.

Ashburton Replica Portfolio Limited – Sterling Asset Management Fund, Dollar Asset Management Fund and Euro Asset Management Fund – proposed changes to investment powers

In conjunction with the appointment of Fidelity, and subject to shareholder approval at the EGM on 16 July 2019, the following changes to the investment powers of the above mentioned Funds will take place:

Exposure to collective investment schemes

In order to access and gain further diversification to international markets, the total level of exposure of each of the Asset Management Funds to collective investment schemes will be increased to a maximum of 80% with no more than 20% in one single scheme. The current investment power allows each of the Funds to be exposed to a maximum of 20%, in aggregate, per Fund. Please note that the exposure is per Fund and not at umbrella level.

Exposure to futures and options

Currently futures and options may be used by the Funds for efficient portfolio management purposes (ie to reduce risk, reduce cost or generate additional capital or income with no, or an acceptably low, level of risk). The investment powers currently allow for futures and options to be entered into without limit for the hedging of currency or price of investments or to close out other derivative transactions. For any other purposes than those mentioned previously, a maximum exposure of 25% of the each Fund’s net asset value is imposed. To allow greater market exposure at a lower cost than physically buying assets, this investment power will be increased to allow a maximum exposure to futures and options, other than for the hedging /closing purposes mentioned previously, to 50% each fund’s net asset value. The investment power will be for efficient portfolio management purposes only and no geared positions will be permitted.

Further information can be found in the Circular.

Ashburton Global Growth Fund Multi asset fund targeting capital growth. Learn more
Ashburton Sterling Asset Management Fund Steady returns through all conditions. Learn more

Ashburton Investments SICAV – Global Defensive Fund and Global Balanced Fund

The UCITS regulatory framework allows for three risk management approaches: Relative Value at Risk (“Relative VaR”), Absolute VaR and the Commitment approach. The risk management process for the Ashburton Investments SICAV – Global Defensive Fund and Global Balanced Fund is currently Relative VAR. This methodology was initially chosen at the time the Funds were launched to allow leverage as part of the Funds’ investment strategy. However, it should be noted that leverage as part of the investment strategy has never been utilised by the Funds.

As a consequence, the risk management methodology for the Funds will change from Relative VaR to the Commitment approach in order to simplify the process and to be consistent with the approach of all other funds within the Ashburton Investments SICAV range. The change will also generate a cost saving by way of reduced fees to the Funds’ third party service providers in respect of monitoring duties.  The change will be effective from the date of Fidelity’s appointment as sub-investment manager and, as at this date, due to this change, the Funds will no longer be permitted to use leverage as part of the investment strategy.

In addition to the changes above, to broaden potential distribution into other Ashburton Investments’ key markets, and to meet the regulatory requirements in these markets, the ability to invest in hedge funds will no longer be permitted from the date of Fidelity’s appointment as sub-investment manager.

Click here to read the Shareholder Notice which provides further detail about the appointment of a sub-investment manager and proposed amendments to the Ashburton Investments SICAV - Global Defensive Fund, Global Balanced Fund and Global Growth Funds.