Rathbones has launched a six-fund execution-only managed portfolio service investing in in-house funds.
The firm had announced the launch in its latest results in February. It said it expects to see £200m of inflows this year from its relationship with 12 networks and national advice firms.
The portfolios, all actively managed, will invest in “one or two” of the £476m multi-asset funds managed by David Coombs at Rathbones Unit Trust Management and his assistant Will McIntosh-Whyte, Rathbones says.
The strategies, risk-rated by Distribution Technology and named Cautious, Balanced, Income, Balanced Plus, Equity and Equity Plus, will distribute a monthly income, except for the Cautious and Balanced, which will distribute it on a quarterly basis.
Mike Webb, group executive director of Rathbone Brothers says: “Unlike ‘model portfolio solutions’, which might only deal monthly or quarterly, and therefore miss opportunities to deal at the best prices, clients of the Rathbone Managed Portfolio Service will benefit from the daily management of the RMAP funds, and the experience of a team that has demonstrated positive returns through different market conditions.”
Minimum investment will be £15,000 with charges ranging from 1.06 per cent from the lowest risk level fund to 1.15 per cent for the highest.
A firm’s spokesman says “at this juncture” the MPS is only available via financial advisers. Current Rathbone Investment Management investors will also be able to access the new service at the same price. The portfolio can be held in Isas as well as part of a Sipp.
Coombs says: “This year is likely to see continuing uncertainty, providing opportunities that active managers can exploit, both in stock selection and asset allocation.
“Against this backdrop, investors will require their investments to be managed in a way that will secure returns in real terms – growth and protection on the downside.
“By drawing together expertise from across Rathbones and capturing the best ideas from the broadest possible global universe of individual securities and funds, we look to provide that within a set of risk parameters.”
Coombs recently told Fund Strategy he has increased his cash allocation to an all-time-high due to market uncertainties. The Multi Asset Total Return and Strategic Growth funds currently have the highest cash position they’ve ever had at 35 per cent and 17 per cent respectively.
The Strategic Growth fund has overperformed the UK Consumer Price +5% at 26.55 per cent versus the benchmark’s 17.47 per cent over three years, according to FE.
The Total Return fund return 16.68 per cent versus the 8.26 per cent of the Sterling LIBOR 6-Month +2% over the same period.