Fund Legal Name: CF 7IM AAP Moderately Cautious
Manager: Seven Investment Management
Initial Charge: 4%
AMC: Class A: 1%, Class C: 0.50%
Launch Date: 27 March 2008
IMA Sector: Unclassified
Aim: CF 7IM AAP Moderately Cautious Fund aims to provide a total return, substantially by way of income though with some capital appreciation. There may be a moderate risk to capital. The manager will invest the majority of the portfolio in fixed interest and equity instruments using predominately passive strategies while also utilising alternative asset classes, some of which will be actively managed. The asset allocation for the entire portfolio will be actively managed.
Commentary: The AAP funds reflect the same 7IM strategic and tactical asset allocation as the existing, actively managed 7IM funds. However, instead of utilising active funds the AAP funds will employ passive investment vehicles such as Exchange Traded Funds for a majority of the portfolio.
7IM have launched the AAP funds partially as a result of the increased demand for lower costs in multi asset portfolios and partially because the development of the Exchange Traded Fund market has progressed to the point where it is now possible for 7IM to do so. The passive investment world has developed enormously over the past decade, allowing the 7IM AAP funds to be very precise in selecting where to invest. Using a passive Exchange Traded Fund, 7IM is able to invest directly in precise baskets of, for example, water or timber stocks and thus take advantage of scarce commodities in a more direct manner than via a broad based commodities fund.
While the majority of the portfolio will be invested in fixed interest and equity instruments, the fund may also invest in, warrants, deposits, cash and near cash, money market instruments, other transferable securities, derivatives and forward transactions and other investments to the extent that each is permitted by the regulations.
The 7IM AAP funds are now available via Capita Financial Managers, Zurich’s Sterling platform and 7IM’s platform. 7IM is hoping to make the funds available on the Cofunds, Fidelity Funds Network and Selestia platforms given an appropriate level of demand.
