Sarasin Tomorrows World remains 'patient' on alts valuations

Despite higher valuations, newly-launched is overweight equities

The Sarasin Tomorrows World Multi Asset fund’s portfolio is “almost in shape” three months after launch, but high valuations in the alternatives space are forcing the management team to be “patient” and hold off on fully allocating its capital to the asset class.

The multi-asset fund, which sits in the IA Mixed Investment 40-85% Shares sector, currently allocates 60% to equities with a 20% weighting in fixed income. Managed by Megan Brennan, Henning Meyer and Sarasin's deputy CIO Henry Boucher, the fund's fixed income element is split between government bonds and sustainable credit. Low yields in the former and high valuations in the latter have made the team favour equities, and partly why the fund currently has 15% in cash. "The portfolio is almost in the shape we want it, but we are being patient in the alternatives space," explained Brenna...