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By Beverly Chandler, Opalesque London:

Jubilee Financial Products has created a glass rather than a black box on which to model its new multi-asset fund, the Jubilee Momentum Fund. In an interview with Opalesque, Jeffrey Seifert, Partner at Jubilee Financial Products explained that the new product is targeted at family offices and sophisticated high net worth investors.

"We are trying to take advantage of the momentum anomaly that when trends exist, they tend to persist" he said. "Academics have identified this phenomenon and there are many explanations of why it works: inefficient news dissemination; different speeds of making decisions; confirmation bias; manager selection effect or simply herd mentality."

Seifert explained that he looks at what trends exist in asset management over a six month horizon and constructs the portfolio using futures or ETFs along the same lines. The fund has a core 90% portfolio diversified over UK equities, inflation linked gilts and commodities. To this mix of broad diversification is added what Seifert describes as 'a modicum of leverage', achieved with the 10-15% balance of the portfolio.

Target returns for the fund are 12% and the management fee is 1.25%. The fund is registered as a Professional Investor Fund in Malta and is denominated in Sterling, with the minimum investment standing at £25,000 (US$ 40,000) and has US dollar and Euro asset classes.......................

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