New Fund Offers Ideal Solution for Trustees

Trustees wanting to ensure that trust assets are invested in a safe and secure fashion and benefit from best of breed investment management now have a new option: the ZEDRA Fiduciary Investment Fund. The fund is an open-ended structure based in Jersey.

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It has been designed to address a range of issues faced by trustees charged with overseeing smaller client mandates, where the cost of appointing or changing a fund manager can often be prohibitive. There are currently two sub-funds, both with a medium risk strategy, with one aimed at total return investors and the other more considerate of generating a stable income flow, currently targeting a yield in excess of 3%. In designing the fund, ZEDRA has sought to focus on delivering a low fee structure.

ZEDRA will appoint and monitor the performance fund managers using tried and tested methodologies it already applies to the £7bn of client access currently under its control. Assets can be switched between managers within the Fiduciary Investment Fund, minimising transition costs, which may also be beneficial for tax planning in certain client scenarios.

Mike Farley, Managing Director of ZEDRA Fiduciary Investment Services said, ‘If a trustee has £50 million to invest, you can allocate your financial assets between two or three different investment managers, to reduce manager risk and still have sufficient assets to negotiate competitive costs at the manager level. This is more problematic, if your trust fund has £3 million to invest. This is where our new Fiduciary Investment Fund comes in: It allows trustees to reduce active manager risk and in turn portfolio volatility, but also to benefit from lower ongoing management charges as the collective assets of the fund are significant. We developed the fund because we saw the need for an investment solution built for trustees, which isn”t constrained to one investment manager”s process where you are tied to a specific strategy and style.’ Mike added: ‘We have been able to price the Fund very competitively, as history shows that minimising costs feeds directly through to performance and compounds into higher net returns’.

The ZEDRA Fiduciary Investment Fund is currently only available to clients of the Zedra Group and more specifically Sterling investors. However Rob Lucas, Director of ZEDRA Fund Services added: ‘We have already seen a lot of interest in this innovative approach to managing fiduciary assets and therefore anticipate launching a US Dollar version and also opening the fund to other service providers in due course.  The appointment of individual investment managers today is becoming more and more expensive for trustees, and can often be a reason why a trustee can stick with an underperforming manager rather than switch elsewhere’. The fund was launched on 1st August and has assets in excess of £250m.

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About ZEDRA 

ZEDRA is an independent, global specialist in trust, corporate and fund services. The company was acquired from Barclays in January 2016 by an independent investor group, with an ambitious plan to grow the company, expanding and strengthening the services it offers to clients around the world. It currently has 15 global office in 14 jurisdictions including, Jersey, Guernsey, the Isle of Man, Miami, the Cayman Islands, Australia, New Zealand, Hong Kong, Netherlands, Singapore, Luxembourg, the UK and Switzerland.

ZEDRA”s 500 strong team of industry experts is dedicated to creating and delivering bespoke solutions for clients. The business is focused on the strong commitment of an experienced team, fostering an entrepreneurial approach to delivering exceptional client services.

ZEDRA has diverse client base including high-net-worth individuals and their families, international corporations, institutional investors and entrepreneurs. Under the ownership of a private independent investor group, ZEDRA have the flexibility, boldness and expertise to respond to complex needs whilst maintaining the highest standards of corporate governance in an ever-evolving regulatory environment.

SAINT HELIER, Jersey, September 12, 2018 /PRNewswire/ —

New Fund Offers Ideal Solution for Trustees