Barclays Wealth has developed a risk-graded fund range as part of a push into the intermediary market.
Global Markets, which launches today, comprises five risk-profiled portfolios investing in exchange traded funds (ETFs) across various asset classes.
Investors can gain exposure to equities, bonds, property, commodities, alternatives and cash through underlying ETFs.
The lower the risk grade, the greater its weighting to cash and quasi-cash assets such as government bonds, while the higher risk funds will typically have more in equities and alternatives.
The group says the Ucits III funds cannot be described as passive vehicles because they feature a monthly tactical overlay, which the management team uses to change holdings depending on market conditions.
The products are designed to straddle the space between pure index funds and conventional actively managed portfolios, while offering a charging structure more in line with passive products.
Director Tony Lanser says he expects demand for this type of product to increase in the wake of the Retail Distribution Review.
“We have a reputation in the marketplace for structured products. Over the next 12 to 24 months, the financial services landscape will change post-RDR. Consequently, we have seen demand from investors for us to widen our product set and bring a core offering into the market,” he says.
The funds will carry a 4% initial charge which will be available as initial commission and a 1% annual charge including 0.5% trail. Minimum investment in the funds is £3,000. They will be available through most major platforms.
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