Former Citywire AAA-rated Ian Lancaster’s Cogent Asset Management has been selected to manage a cancer breakthrough fund that invests in treatments that are in late-stage development.
The fund, which is being advised by specialist consultants Keyholder Investments, was launched by Luxembourg-based Luxif Management.
The fund manager is targeting between £300 million and £500 million and will be investing in six to eight assets.
The fund expects to return an average of between 3% and 10% per annum net of fees, over a five to seven year investment horizon.
Cogent Asset Management was launched by Lancaster in 2013. Prior to Cogent he had spells at Axa, Aviva and Reliance among others.
‘Cogent Asset Management is very excited to have been chosen to help design the innovative and unique Cancer Breakthrough fund,’ said Lancaster.
The fund will focus on downside protection and is aiming to achieve long-term capital appreciation and preservation of capital while lowering volatility.
Minimum investment is £10,000 and it has three share classes. Class A has a management fee of 1.5% while Class B and C will charge 0.5%.
‘The fund will enable investors to gain exposure to the potential high returns from the commercialisation of new wave targeted cancer therapies, without the high risk normally associated with such investments.
‘This is achieved by allocating the majority of assets to cancer research, whilst diversifying the remaining assets across a broad range of securities and individual funds,’ Lancaster said.
‘This pioneering strategy aims to achieve consistent and sustainable returns while lowering the volatility as compared to conventional high-risk biotechnology funds.’
Examples of treatments the fund will invest in include Vaccicure, which in clinical trials has been shown to inhibit and subsequently slow, or arrest, the growth of pancreatic, gastric and subsequently other cancers.
The investment in the fund is available through Capital Group International and Cornhill Management.