Unigestion’s multi asset Navigator fund hits three year track record delivering double digit returns in 2017

Navigator, which is run by Unigestion’s Cross Asset Solutions team, is a macro risk-based multi asset investment strategy aiming to deliver a smoother return profile than other multi asset strategies.

The $183 million UCITS fund* delivered investors returns of 10.6% in 2017 and 5.3% net of fees since inception**. Navigator’s risk managed approach allowed investors to benefit from these returns with 4.7% volatility, compared to the 13.0% volatility of the MSCI AC World on an annualised basis  since inception**.

Most notably, the fund significantly outperformed the MSCI AC World during January 2016 when there were fears around a US recession, as well as when markets reacted to the UK’s Brexit decision, remaining flat whilst markets fell.

Jerome Teiletche, Head of Cross Asset Solutions at Unigestion, said:

“Our overall performance has been achieved consistently with expected contributions from both traditional and alternative risk premia, and from the diversified range of systematic and discretionary strategies run by the team.

“As we move further into 2018, our positioning still favours growth assets over fixed income to benefit from the synchronised growth, but we are preparing the portfolio for higher inflation expectations as indicated by our nowcasters for more than one year now. From our standpoint, the major risk is a stronger normalisation of monetary policy than what the market is currently expecting. Furthermore, as valuations are becoming stretched on most traditional assets, we expect our alternative risk premia strategies to contribute further to our performance and focus on relative value positioning.”

Lloyd Reynolds, Head of UK and Nordic Intermediaries, said:

“While a number of other similar popular funds in the multi asset space have struggled to perform over the last twelve months in particular, Navigator has thrived due to its robust and dynamic risk management delivering double digit returns. As investors re-examine their existing multi asset or diversified growth fund exposure, we believe that Navigator’s smoother return profile, delivered by an experienced and academically respected team, will resonate well with the UK market. Some might say, it is the best multi asset fund you haven’t heard of yet.”