Winterthur Life has launched three managed funds available through its entire pension range. Each of...
Winterthur Life has launched three managed funds available through its entire pension range.
Each of the portfolios will have a maximum annual charge of 1%. The multi-manager funds, Elite Cautious, Elite Balanced and Elite Stock market, aim to combine the different skills of leading fund managers within one fund, using the strengths of different managers for each geographical sector.
The group has screened which fund managers it wanted to include in the funds and has chosen 10 to run the different aspects of the portfolios.
The UK element of the Elite Stockmarket fund is constructed of BGI's All Share Tracker, Perpetual High Income and Jupiter Income with individual weightings of 22.8%, 17.1% and 17.1% respectively. Sarasin Equisar, with a 15% weighting makes up the Global portion, Credit Suisse Transatlantic will cover North America at 7.7%, Gartmore European Select Ops and INVESCO GT European Growth will cover Europe with 5.6% each.
Fidelity South East Asia makes up the Far East exposure with 2.9% and Baillie Gifford Japanese will run the Japanese exposure at 4.7%. The 1.5% remainder is cash.
The equity holdings of each of the funds are based on the ABI's specifications minus 2%, used either for cash or taking a small asset allocation bet. For example the Stockmarket funds neutral position will be to hold 98% in equities and 2% in cash.
The break down of the asset class weightings is based on average weightings devised by Lipper. Lipper is also constructing benchmarks for the funds and will assist in monitoring the performance of the managers. The funds will be rebalanced on a monthly basis.
John Moret, director of sales and marketing at Winterthur Life, said: "No one fund management house can claim to be experts in managing money in every stock market or in every asset type. Most managers have clear strengths and weaknesses. We have appointed individual fund managers to run elements of the funds best suited to their skills. The launch of the Elite range is bringing the best of breed approach to the retail pensions market."
The Balanced and Stockmarket funds will feature an annual management charge of 1%, while the Cautious has an annual charge of 0.75%.
Making up the Balanced portfolio are the same managers as in the Stockmarket fund, with the addition of Winterthur Index Linked, Winterthur Fixed Interest and Gartmore's Global bond funds.
The Cautious fund again features all the same managers but with different weightings. The Cautious fund has a 25.5% weighting in fixed interest whereas the Balanced fund has 9.2.2%.
BGI's tracker fund has a 31.5% weighting in the Cautious fund as opposed to 30.1% in Balanced and 22.8% in the Stockmarket fund. Cash, held in Winterthur Deposit, is high in the Cautious fund at 7.4% and goes down to 4.5% in Balanced.
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