Boutique asset manager Church House has launched a managed portfolio service of six risk-graded funds.
The Church House Advantage Managed Portfolio Service, available through Parmenion’s platform, will use in-house funds with a relative volatility objective represented by a percentage of the FTSE 100.
“Whilst ‘risk’ means different things to different people, we define risk for our investors in terms of the potential for permanent or irretrievable loss to capital,” says Church House chief executive James Mahon.
He says: “The ‘risk decision’ drives the way we manage each and every portfolio even for the higher risk investor.”
The portfolios go from risk level three to eight and include the Cautious Income Portfolio, which is the lowest risk model, Income, Income and Growth, Equity Growth with Income, Equity Growth and Higher Risk Equity Growth portfolios.
Church House Investment Management sales director Sam Liddle says: “The investment industry has become over-burdened with definitions and meanings for risk-management – ‘risk-targeted’, ‘risk-factored’, ‘risk-profiled’ and so on, some of which might resonate with advisers and discretionary fund managers but, understandably, serve only to confuse many end investors.
“We are trying to simplify volatility by linking it to an index they will understand and a process which first and foremost is designed to preserve capital. A key difference to us as independent fund managers is that we won’t be forced buyers at the top to maintain higher volatility targets in our models and we won’t be forced sellers at the bottom to maintain lower volatility targets.”
The funds have an annual management charge of 0.25 per cent.