City Asset Management launches model portfolios

Discretionary manager City Asset Management (CAM) has launched five risk-rated model portfolios which will be available on a number of platforms.

The model portfolios come in five models aligned to clients’ risk attitudes – Cautious, Balanced, Income, Growth and Aggressive – and are available on the Elevate, Novia and Ascentric platforms, among others.

“Global insecurity and continued market volatility together with increasing regulation and RDR fast approaching are focusing IFAs’ attention on outsourcing to discretionary investment managers,” says CAM director Helen Angove.

CAM’s multi-asset portfolios will offer exposure to a range of asset classes including cash, bonds, property, equities, commodities and alternatives according to the economic cycle.

The Cautious portfolio aims to provide a real return over a five-year rolling period with an emphasis on capital preservation, whilst the Aggressive portfolio has an objective of providing a return in excess of the FTSE World Index.

The minimum investment amount is £20,000 and annual investment management fee is 0.3% (plus VAT where applicable). Institutional terms on the underlying funds’ AMC will keep the TER as near to 1% as possible, says CAM.

It added the portfolios offer a cost-effective means of accessing its investment philosophy whilst also giving intermediaries more time to develop client relationships and removing some of the regulatory burden of managing direct portfolios.

The actively managed portfolios will be rebalanced monthly, with CAM providing quarterly manager commentaries ensuring both clients and intermediaries are kept fully updated.

“In the continuing uncertain and volatile markets, this regular update will prove an invaluable tool when explaining any changes in asset allocation,” adds Angove.