Tilney targets advisers with ‘smart beta’ range

Added 1st December 2016

UK wealth manager Tilney for Intermediaries is planning to launch a new range of ‘risk graded, low cost multi-asset funds’ in the first quarter of 2017.

Tilney targets advisers with ‘smart beta’ range

The range will combine an active asset allocation overlay with investment through ‘smart beta’ funds.

Tilney said the launch is in response to growing demand from financial advisers for lower cost investments, but without the ‘inherent limitations’ of deploying solely through traditional passive products.

The range will make use of a ‘new generation of smart beta or advanced passive strategies’ that have emerged in recent years, which re-weight baskets of investments on a variety of criteria other than just market capitalisation, as with traditional passives.

Such weighting factors can include book value, dividends, earnings, cash flow and balance sheet strength.

Low cost solution

Miles Robinson, head of Tilney for Intermediaries said: “There’s a clear increase in demand from advisers for lower cost investment solutions, but many advisers also recognise there are significant drawbacks with traditional passive products, which leave their clients assets fully exposed to the risks of valuation bubbles and also losses in overall market downturns.”

“In developing an innovative solution for financial advisers, we plan to combine the same discipline and successful approach to active asset allocation which has proven successful with the existing Multi-Asset Portfolio fund range, with investment selection that makes use of the ‘next-generation’ of passive investment strategies,” Robinson said.

“Use of these strategies will enable us to better reflect our thematic views, while mitigating the costs and uncertainties associated with selection of actively managed funds. The portfolios will represent an evolution in the market from the plethora of traditional passive-only, multi-asset funds,” he added.

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Alex Sebastian

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Alex joined Portfolio Adviser in April 2014 and has been a financial journalist since 2008. He has previously held editorial positions at the Financial Times Group and Euromoney Institutional Investor. Alex is NCTJ qualified and has a degree in economics from the University of Sussex.

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