Isis Asset Management is planning to merge two of its funds of funds later this year, while a n...
Isis Asset Management is planning to merge two of its funds of funds later this year, while a new portfolio risk model is being adopted to take account of continuing market volatility.
The Friends Provident Managed Portfolio and Isis Managed Growth Trust are both fettered funds of funds in the balanced managed sector, run by Richard Philbin.
William Russell, head of marketing at Isis, said it would be a logical move to merge the portfolios, subject to FSA approval and the agreement of investors. The merger is likely to take place in August. 'There is seemingly no rationale for having two fettered funds of funds in the balanced managed sector. We will need to get regulatory approval but there appears to be no significant obstacles,' said Russell.
There will be a big promotional push on Isis's unfettered funds of funds from the second quarter. The group will, however, continue to run fettered portfolios.
'There is still a market for fettered products. We have a large number of clients who made a conscious decision to invest in them,' said Russell.
The move will form part of a wider rationalisation and rebranding of Isis funds. The group has 55 portfolios and plans to rationalise the range to about 30 by August 2003.
Isis is also taking on a third party risk model to help improve portfolio construction.
Riskdata will enable Isis to assess risk on a more short-term basis according to Richard Boardman, head of risk at Isis.
He said: 'The model gives thousands of possible outcomes for each individual asset in a portfolio and this means we will be able to measure how different outcomes will affect unit price. It will mean we will be looking more at the volatility over the next day and month rather than on a longer-term basis.
'It is an addition to the existing armoury but it will not change the fact that our investment process is driven by fund managers. It will help us manage risk in these times of much higher volatility.'
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