The Dublin-domiciled UCITS IV range includes the Global Defensive Fund, the Global Balanced Fund and the Global Opportunities Fund. The balanced fund has been active since 22 December, while the defensive and opportunities offerings are due to launch on 19 January.
James Sullivan and Martin Gary, Coram’s directors and senior fund managers, will co-manage the funds using their traditional defensive investment approach, though Sullivan explained that each fund will have differing levels of volatility as dictated by its performance.
“There will be varying degrees of volatility, which will be a by-product of the funds’ performances as ever with Martin and my style,” he said. “The three funds over time should naturally sit at different points of the risk/reward spectrum, with the defensive fund at the lower end and opportunities towards the top end. We are confident that will be the case on a rolling three-year basis.
While there are no specified regional or industry targets for the offering, Sullivan outlined his preference for the Japanese markets.
“The stabilisation of the yen has added to our view that Japan will continue to perform from an equities perspective,” he said. “Because of what has happened with the yen and intervention, it is probably going to come with a bit more volatility than it would have done without that intervention. But I think with the yen stabilising at around 185 to 180 against sterling, that is quite an enticing entry point to both the currency and equity markets.
“I am optimistic in the long-term. Short-term it is probably going to come with a few lumps and bumps, but longer-term it is a very under-rated and potentially under-valued market.”
In addition to highlighting the pan-Asian market, Sullivan also said that he believes there is still some potential for a light weighting in the US and European equity markets, as well as the US dollar.
“The dollar has always been the bastion of value, and when times are tough the dollar tends to perform well against sterling,” he explained. “We expect that to play out again, but it is not as exciting a trade as it was when it was 151 against sterling. Perhaps the lion’s share of that trade has paid out, but there are still some rewards to be had.
“The risks of the dollar depreciating are small, and the US is quite likely to move policy before anything develops in pan-European markets. We are confident that the dollar will strengthen further, but a lot of that trade has paid out so we will be more conservative with the weighting towards that theme.”
Having previously mentioned the possibility of either buying or setting up an investment trust in the future, Sullivan confirmed that the firm’s next step will be to launch a multi-asset income fund.
“The next fund will naturally be a multi-asset income fund, but we wouldn’t anticipate moving on that until at least the summer,” he said. “These flagship funds are going to bed in before we start overstretching ourselves with other hires on the management desk or new fund launches.”
Coram has also announced the recruitment of a business development manager to oversee its Midland operations.
Paul Booler joins Jake Lewis on the development team – who manages clients in the South of England – and is the second of three projected appointments to the department, with the firm actively seeking someone to take on the North, as well as continental Europe.
“The whole of the UK is potentially a client base for us,” said Sullivan. “Our long-term ambition is to have three business development managers, and we have two in place at the moment
“We have clients across mainland Europe, and it is within the business plan to bring in an additional sales person to service that region. That is something that will happen when we identify the right person.”
Booler formerly held a position as regional development manager with Axa Wealth.
| Fund | Entry | Ongoing | Performance |
|---|---|---|---|
| Global Defensive | 1% | 1.87% | None |
| Global Balanced | 1% | 1.38% | None |
| Global Opportunities | 1% | 1.46% | None |
