Tilney launches smart beta passive portfolios

Jan 26th, 2016 | By | Category: Alternatives / Multi-Asset, ETF and Index News

Tilney Bestinvest has announced the launch of its new Advanced Passive Portfolio fund range for UK financial advisers and their clients. The APP funds will combine an active approach to asset allocation invested through smart beta passive investments and low cost trackers.

Gareth Lewis, CIO, Tilney

Gareth Lewis, CIO at Tilney, said APP investments enhance the scope for investment managers

The suite of five risk-rated multi asset UCITS OEIC funds are launched with a fixed price offer period on each fund of 100p per share from 1 February to 15 February. The risk rated funds include a high proportion of exchange traded products; Cautious 59%, Balanced 57%, Growth 60%, Aggressive Growth 62% and Income 60%. The funds will replicate the asset allocation approach on sister funds in Tilney Bestinvest’s existing Multi-Asset Portfolio fund range.

The APP funds will be co-managed by Gareth Lewis, Chief Investment Officer, and Ben SeagerScott, Director, Investment Strategy. The range will provide advisers and their clients with a series of low cost core investment solutions but without the limitations and inherent underperformance of exclusively using traditional passive strategies that weight holdings solely on market-capitalisation.

Gareth Lewis, Chief Investment Officer and co-manager of the funds, said in a statement: “These advanced passive investments greatly enhance the scope for investment managers like us to express active asset allocation views in a much more granular way than has been previously possible through use of traditional index funds. As the recent market turmoil and slide in commodity stocks reminds us, there are serious drawbacks in investing solely through traditional passive products, as these leave investors fully exposed to losses in a declining market but also the risks of sector valuation bubbles in rising markets.”

Miles Robinson, Head of Tilney for Intermediaries, added: “We have listened to the views of financial advisers who are hungry for lower-cost managed solutions for their clients but who also recognise the limitations of existing passives-only products that exclusively invest through market-cap weighted trackers. The APP funds are a genuinely innovative solution that enables investors to access the benefits of a truly active and successful approach to asset allocation, with use of lower-cost instruments to provide a series of risk-rated, cost-effective multi-asset solutions.”

Each fund will have a 0.65% annual management charge with the OCFs (operating cash flows) capped at 1%. The minimum investment for each fund will be £1,000.

The funds are available on Aviva Wrap & SIPP, Pershing, SEI and Transact.


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