Marlborough is launching an expanded multi-asset fund range with new funds added, significantly lower charges and an enhanced investment strategy that will mirror its managed portfolio solutions (MPS) range.
The same multi-asset investment solutions team, who have more than 200 years’ combined experience, manage the funds and the MPS portfolios. They will now use a single investment process across the two ranges and Marlborough’s international multi-asset portfolios.
Danny Knight (pictured), commercial director – intermediaries at Marlborough, said: “More and more advisers are choosing Marlborough as their trusted investment partner, and we’re constantly exploring ways to add value for them.
“The latest enhancements to our multi-asset range mean we’re using one investment engine, with a single process and philosophy, to power all of our multi-asset solutions. This means advisers can select the most appropriate option for each individual client – whether that be fund or MPS – secure in the knowledge that all of our multi-asset solutions are driven by the same transparent, consistent and repeatable process.
“Our MPS portfolios are growing in popularity with advisers, who value our commitment to investment excellence and outstanding service, and we expect this to continue. However, we recognise that the MPS structure can present a number of challenges and constraints, which have been well publicised.
He added: “We’re launching our expanded multi-asset fund range because we’re seeing an increase in interest from advisers. Multi-asset funds can offer economies of scale, a significantly greater range of options for underlying investments and can be rebalanced far more quickly to seize on opportunities.
“In addition, there are important benefits relating to Capital Gains Tax when rebalancing outside a tax wrapper. All this leads us to believe that, while there’s still an important role for MPS portfolios, the market will evolve and that expertly managed, competitively priced multi-asset funds are likely to see a significant resurgence in popularity.”
As a result of the expansion, Marlborough’s range of multi-asset funds has been increased from four to six, and the names ‘Conservative, ‘Cautious’, ‘Balanced’ and ‘Global’ will no longer be used. Instead, the portfolios will be numbered from 3 to 8 – reflecting the level of risk and reward targeted.
The strategic asset allocation process used by the funds has also been enhanced. They will now use Marlborough’s proprietary system, Strat Flex, to determine the optimal blend of key global asset classes for each risk profile. Strat Flex is already used for the MPS portfolios.
Charges for the funds have also been cut. This will reduce the upper limit for the ongoing charges figure (OCF) to a highly competitive 0.66% for the retail ‘P’ class units, and all six funds will now sit in the Investment Association’s Volatility Managed sector.
The investment objectives and policies of the funds have also been updated under the changes, which have been approved by the Financial Conduct Authority and by unitholders at an extraordinary general meeting.
Marlborough’s MPS portfolios, which are managed by the same investment team using the same investment process as the multi-asset funds, have a five-star rating and a gold service rating from Defaqto. In addition, the entire MPS range has a ‘Premium’ rating from Dynamic Planner.
