Novia launches smart beta portfolios

Stockmarket-Performance-Business-700x450.jpgCopia Capital Management, the fund management group of platform Novia, has launched a smart beta ETF range into the adviser space.

The discretionary fund manager says the two smart beta portfolios are the first to be rolled out to the UK adviser market.

Copia Capital Management has teamed up with US ETF provider First Trust Advisors and US-based technical research services firm Dorsey, Wright & Associates to build the portfolios, which will be comprised of smart beta ETFs with a quantitative asset allocation overlay.

The Copia First Trust Smart Beta portfolio is made up of FTA’s AlphaDEX ETFs, which pick stocks based on their potential for capital appreciation rather than size, with an overlay to calibrate country and risk allocation.

The Copia Dorsey Wright Smart Beta portfolio is based on DWA’s philosophy that trends in relative strength can be used to identify the winners from the losers in any market. DWA uses rules-based methodology to select the asset classes with the best relative strength. The portfolio, which will primarily use First Trust AlphaDEX ETFs, will be fully invested in equity ETFs.

Bill Vasilieff, chief executive at Novia Financial, says: “We are thrilled to be partnering with the US leading ETF providers to offer the first smart beta asset allocated ETF portfolios to UK Advisers. Both First Trust and Dorsey Wright have tremendous proven track records in their markets and are leaders in their fields. We are keen to build on the success of the existing Copia model range and the addition of these new models is recognition of the performance that smart beta can generate.”

The Copia First Trust Smart Beta portfolio has a fee of 0.8 per cent and the Copia Dorsey Wright Smart Beta portfolio has a fee of 1.1 per cent. Both will be available on the Novia Platform from 14 March.