The portfolio, one of a series of sub-funds within the Sovereign High Security Fund – a mutual fund launched in 2004, aims to deliver “steady long term capital growth” by investing in a combination of absolute return and fixed income assets.
MPL said it has launched the share class in response to investor demand for the product in Norway, after the fund’s dollar share class delivered a 9.2% return over the 12 months to 1 March 2012 and a total return of 12.75% since its launch on 1 October 2010.
MPL said the Goodwood portfolio is managed using a “defensive strategy that favours smooth investment returns with conservative growth targets”. It is weighted towards asset classes which MPL said will achieve these objectives without undue volatility. MPL added that the investment team uses a “blend of short term fixed income securities, absolute return opportunities and other asset classes in which it sees medium to long term value”.
Jeremy Leach, managing director of MPL and a director on Goodwood’s investment strategy team, said: “Norway has not suffered recession like many other European countries in the aftermath of the financial crisis. It has a small population and is incredibly rich in mineral resources and oil. As a result, Norwegian investors are wealthy but they are also cautious. We are responding to investors there who would like to access the steady returns offered by a product that is managed to deliver stable returns and fully hedged in their own currency.”
There are no initial charges when investing in Goodwood and the annual management fee is 1.5%. The minimum direct investment in the Portfolio is NOK 300,000, or $30,000 in a personal portfolio bond.
