Evercore releases four portfolios of ETFs for retail

Evercore Pan-Asset Capital Management has released four model portfolios offering retail investors dynamic asset allocation via ETFs.

The PanDynamic range is based on a dynamic asset allocation process combining long-term investment in assets with shorter-term tactical decisions which can protect assets in times of stress.

The firm says ETFs are a good way to reduce investment management costs and improve returns to the investor, while removing individual stock risk and avoiding underperforming active investment managers.

The range comprises the Cashplus, Balanced, Growth and Aggressive funds, which are low risk, medium risk, medium-higher risk and higher risk respectively. The funds invest in bonds, equities, listed property, funds of hedge funds, private equity, commodities and cash with weighting options according to risk.

Evercore says that investors can only access the range via their IFA, which charges a fee. Investors will have assets managed within an Ascentric account, which charges a commission of £1 per trade for portfolio adjustments and rebalancing.

The firm says the range provides investors with the benefits of discretionary active asset allocation for the price of a passive UK-equity tracker fund at around 1%.

It adds the product is "the shape of things to come," in terms of being transparent in charges, and in line with direction given to the financial advisory industry by the Retail Distribution Review.

Evercore Pan-Asset CEO Christopher Aldous says: "Our method of using index-tracking ETFs avoids the specific stock risks, keeps management and dealing costs down and lets Evercore Pan-Asset concentrate on what makes the real-difference - where to be invested and, from time to time, whether to be invested at all."

Aldous says the firm undertakes regular asset allocation decisions to remove market risk through a selection of ETFs, making the process cheap and efficient. He adds the investor can change the level of risk or withdraw investment at any time.