The IFSL Tilney Bestinvest Advanced Passive Portfolios will invest in both traditional low cost tracker products and advanced passive or smart beta investments.
Gareth Lewis, Tilney Bestinvest’s chief investment officer said the emergence of smart and ‘alternative beta’ funds has been one of the most “significant and exciting” developments of the past two decades in the investment management sector.
“These advanced passive investments greatly enhance the scope for investment managers like us to express active asset allocation views in a much more granular way than has been previously possible through use of traditional index funds.
“As the recent market turmoil and slide in commodity stocks reminds us, there are serious drawbacks in investing solely through traditional passive products, as these leave investors fully exposed to losses in a declining market but also the risks of sector valuation bubbles in rising markets,” he added.
Co-managed by Lewis, and director of investment strategy Ben Seager-Scott, the five passive funds will replicate the asset allocation approach on sister funds in Tilney Bestinvest’s existing £1bn (€1.32bn, $1.43bn) strong Multi-Asset Portfolio fund range.
The five strategies, cautious, balanced, growth, aggressive growth and income each correspond to the profiles of leading independent risk-profiling firms Distribution Technology and Finametrica and have an AMC of 0.65% with the OCF capped at 1%, with a minimum investment of £1,000.
