Tilney to target financial advisers with new ‘Smart Beta’ multi-asset fund range

01 December 2015
 

Tilney to target financial advisers with new ‘Smart Beta’ multi-asset fund range

At today’s Meeting of Minds conference in London for financial advisers, leading investment manager Tilney for Intermediaries, is set to reveal its intention to launch a new range of risk graded, low cost multi-asset funds. These will combine an active asset allocation overlay with investment through the next generation of passive funds, also known as ‘smart beta’ funds. Tilney expects to launch its new fund range in the first quarter of 2016, subject to FCA approval.

Tilney says the range will be designed to meet growing demand from financial advisers for lower cost investment solutions but without the inherent limitations of deploying solely through traditional passive strategies. Traditional index-tracking strategies weight exposure to individual securities solely on market capitalisation, which by definition does not distinguish between overvalued and undervalued companies and guarantees underperformance once fees are deducted. Traditional market-capitalisation based passive strategies will also fully participate in any market declines.

In contrast, the new Tilney 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 variety of criteria other than market capitalisation. These can include strategies which weight exposure on fundamental factors such as book value, dividends, earnings, cash flow and balance sheet strength.

Miles Robinson, Head of Tilney for Intermediaries, commented:

“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. 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.”

Further details on the new range will be provided in the New Year.

-Ends-

Press contacts:

Jason Hollands
0207 189 9919 / 07768 661382
jason.hollands@tilneybestinvest.co.uk

Gillian Kyle
0203 818 6846 / 07989 650 604
gillian.kyle@tilneybestinvest.co.uk

Important information

The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested.

About Tilney for Intermediaries

Tilney for Intermediaries is a leading discretionary fund manager. We have been supporting financial advisers and their clients since the 1990s, building on Tilney’s 150 year heritage supporting individuals, families and charities achieve their investment goals.

Today we operate across the United Kingdom, with investment management teams based in Birmingham, Edinburgh, Glasgow, Liverpool and London.

We offer a broad suite of investment solutions to financial advisers and their clients, including tailor-made portfolios, a segregated model portfolio service with nine strategies to suit different risks and a range of five unitised multi-asset funds. For further information, please visit: www.tilney.co.uk

The Tilney Bestinvest Group of Companies comprises the firms Bestinvest (Brokers) Ltd (Reg. No. 2830297), Tilney Investment Management (Reg. No. 02010520), Bestinvest (Consultants) Ltd (Reg. No. 1550116) and HW Financial Services Ltd (Reg. No. 02030706) all of which are authorised and regulated by the Financial Conduct Authority. Registered office: 6 Chesterfield Gardens, Mayfair, W1J 5BQ.

For further information, please visit: www.tilney.co.uk

About Tilney

Tilney is a leading investment and financial planning firm that builds on a heritage of more than 150 years. The Tilney Group operates under the Tilney brand for Investment Management and Financial Planning and Bestinvest for execution-only investing. We look after more than £22 billion of assets on our clients’ behalf and pride ourselves on offering the very highest levels of professional client service with transparent, competitive pricing across our entire range of solutions.

We offer a range of services for clients whether they would like to have their investments managed by us, require the support of a highly qualified adviser, prefer to make their own investment decisions or want to take more than one approach. We also have a nationwide team of expert financial planners to help clients with all aspects of financial planning, including retirement planning.

We have won numerous awards including Best Fund Platform and Best SIPP Provider at the 2017 City of London Wealth Management Awards; Investment Award – Cautious category in the Private Asset Management Awards; and Stockbroker of the Year, Execution-only Stockbroker of the Year and Self-select ISA Provider of the Year 2015, as voted by readers of the Financial Times and Investors Chronicle. We are pleased that our greatest source of new business is personal referrals from existing clients.

Headquartered in Mayfair, London, Tilney Group employs over 1,000 staff across our network of offices, giving us full UK coverage, and we combine our award-winning research and expertise to provide a personalised service to clients whatever their investment needs.