Multi-manager investment boutique Architas is launching a Multi-Asset Blended range of eight funds, combining active and passive management styles.
The range is the result of a redesign of an existing manager of manager offering, which has assets of £850m, and will sit between the group’s Multi-Asset Active and Passive suites.
It will be run by Architas managers Dawn Kendall and Sheldon MacDonald and will combine active selection of securities with the cost advantage to investors of exposure through passive investments.
The funds offered include three single strategy vehicles as well as five
risk-profiled portfolios. Asset allocation for the risk-profiled funds will be driven by the model developed by Architas in partnership with eValueFE, and they will sit in the IMA Unclassified sector.
The total expense ratio for funds in the Multi-Asset Blended range will be around 1%.
“We have seen increased demand from both investors and advisers for a blend of active and passive management, especially in the lead up to the RDR, where investors are increasingly conscious of cost,” said Cedric Bucher, head of business development at Architas.
The launch of the MA Blended range represents the completion of the first stage of Architas’ move to focus on multi-asset, multi-manager and simple risk-profiled solutions, initiated by managing director Hans Georgeson (pictured) 18 months ago.
“The strategy has been to reposition the active range in accordance with our risk profile parameters, and to build out our passive range and align it similarly,” said Georgeson.
“The proposition is very RDR-friendly, and helps the IFA to focus on the areas where the FSA would like them to focus, such as managing client relationships, asset gathering and asset retention.”
Architas already manages a blended range, the Winterthur Elite suite of life and pension funds, launched in November 1999.
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