The founder of Austrian boutique MYRA Capital Gökhan Kula is set to launch a new multi asset fund which will focus on the German market.
The Luxembourg-domiciled fund is set to be launched in January and will follow a similar strategy to his previous fund at Walser Private Bank, where he helped introduce the use of passive strategies in multi-asset allocation.
The new fund will not rely on return forecasts but rather automatically adjust its weightings according to market trends, Kula, who left the Walser Private Bank last April, told Citywire Global.
The strategy is set to launch with 45% in the Dax 30 index, 45% in German bunds and 10% in gold ETFs and will broadly follow the investment model of the Walser Portfolio German Select fund, previously managed by Kula.
'The traditional approach to fund management has been active management but often, investors are disappointed with returns. What we aim to do with passive investment is minimise downside risk,' said Kula.
He added that he is also planning to to launch his own bundle of indices and ETFs for his newly-formed boutique.
'We are planning a launch of these products as we think that our prognosis-free allocation model is ideal also for implementation in ETFs.'
In the planned fund launch, each Dax 30 stock will be given equal weighting regardless of market cap and will then be adjusted according to relative market performance and volatility. The fund will then be rebalanced at the end of the year to return to its original allocation.
This is MYRA Capital's second fund to be added to its product range following the launch of MYRA Dynamic Turkey fund earlier this year.