Seven Investment Management (7IM) has launched a new range of five ultra-low cost, multi-asset passive model portfolios. The aim is to provide advisers with a simple way to create a well-diversified portfolio of passives for clients, at a rate of 0.15 percent plus underlying investments per annum.
The asset manager has named the selection of low-cost portfolios the 7IM Pathway range. It will be managed by 7IM’s investment team and will utilise its strategic asset allocation framework and risk management process. This means it will combine different asset classes to optimise returns for each of the five levels of risk.
The range of model portfolios will be rebalanced quarterly, with the flexibility to change the asset allocation at any time to ensure alignment with the overall strategic asset allocation.
Initially, the 7IM Pathway model portfolios will be available on six platforms – 7IM, Novia, Transact, Standard Life, Aviva and ARC (Aegon) – with other platforms to closely follow. They are also available as part of 7IM’s retirement income service and discretionary offering.
Verona Kenny, managing director of intermediary, 7IM was pleased with the launch. Noting that 7IM has been providing passive investment solutions to the retail market with models portfolios and discretionary services since 2008, she believed the new range would enable the asset manager to adapt to contemporary changes in the market.
She said: “The launch of the 7IM Pathway range sees us building on this reputation whilst responding to the changing market we work in to deliver a very competitively priced multi-asset passive solution. It means clients can have access to our investment expertise and rigorous risk management process in an extremely cost-effective format.”
Martyn Surguy, chief investment officer of 7IM added: “As we head into an environment of lower expected returns following a prolonged bull market, we believe it is the perfect time to launch 7IM Pathway, a low cost range of volatility managed, diversified portfolios made up of passives.”
Forecasting the portfolio’s potential, Mr Surguy noted the strong nature of its asset allocation process and its track record.
He concluded: “Importantly, the 7IM Pathway model portfolios are underpinned by our robust strategic asset allocation process which has a demonstrable track record in controlling the downside while delivering strong returns with real diversification benefits. In other words, we believe this new range provides you and your clients with a steady hand to navigate what could be turbulent times ahead.”
