Andrew Pereira of The Quadrant Group is a 100% believer in passive investment and has been looking for a fund group to set up a bespoke vehicle in that mould.
Andrew Pereira, director of Stanmore-based The Quadrant Group, will go the extra mile to stick with the passive route, even if that means creating a new product with a fund manager to fill the gap.
Pereira said the firm’s concern over the lack of a short-dated passive vehicle in the fixed interest space was such that he was looking at whether a fund group could create one for his firm.
‘The short-dated element is really important because it reduces duration risk from client portfolios: people have positive or negative views on that, but for us, it’s a necessity,’ he said.
Despite a preference for bonds with up to five years until maturity, Pereira ended up with one of the only passive offerings on the market: the Legal & General All Stocks Index Linked Gilt Index Trust fund, with a duration of 18 years.
‘We are in discussions with a fund manager, but our concern is we want to keep costs and total expense ratios down, so that’s a commercial decision we have to take,’ he said.
For the full article read: ‘Smart Beta: Passive Pereira hunts for a bespoke vehicle’ published on 24th May 2013 by Rachael Revesz.Read The Article on CityWire