Multi-manager creates 'building blocks' to avoid need for fund selection
Multi-manager Skandia Investment Management has decided on the mix of funds that will go in its asset allocator fund range, which comprises seven funds of funds covering many of the major asset classes.
The purpose of these 'building blocks' is to cater to advisers who do not want to choose funds for their clients but will happily asset allocate for them. They include US, UK, Europe, Japan and Far East equities, along with global and UK fixed interest.
Each of these funds have between four and six managers through a mix of institutional mandates and retail funds. Most of the portfolios consist of well-known fund managers such as Fidelity, Schroders, JPMF and Aberdeen. However, there are also some smaller, more boutique-style managers such as Lincoln Far East (Mondrian) and Royal London.
The Lincoln Far East is to be part of the Far East Equity Blend fund. Fiona Barwick is to manage the portfolio and will use a value-based investment approach to choose stocks. Her strategy involves focusing on dividends and cash flows generated by a portfolio of quality large and mid-cap stocks.
The Royal London Income fund is to be one of the portfolios in the UK Fixed Interest Blend fund. Jonathan Platt and Sajiv Vaid are the managers. Around 20%-25% of the fund will consist of unrated credits. The pair seek out the misunderstood areas of the market and scan a universe of 1,500 credits for ideas.
Nic Burton, marketing manager of Royal Skandia said: "We had the self-select range where advisers could choose the funds and the asset allocation. But we also had the Skandia Investment Management range where we carried out the fund selection and asset allocation. We decided it was logical to have something in between where advisers can establish the asset allocation with Skandia selecting the managers."
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