'The key question now is how to counterbalance equity exposure'

'The key question now is how to counterbalance equity exposure'

Momentum Global Investment Management's James Klempster tells Dan Jones where he is looking for fixed income exposure, why some funds could be vetoed by his firm, and where he prefers to use passive products.

What kind of due diligence do you perform when buying a fund for the first time, or seeding a new fund? We are not interested in buying a fund just because it is a big house with a well-known brand. We have seeded funds where we like the people and we like the process. Historically, we have been willing to back managers when they are launching, if we know them well, and the ownership structure gives us the necessary comfort. We have backups for all our managers whom we use when we need them. The research you do around a fund should help you to manage the unexpected. We have a de...