InvestmentsJun 24 2013

Product review: Evercore PanAsset model portfolios

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by

Evercore Pan-Asset has launched a new, low-cost range of model portfolios.

Available on the Novia wrap platform, the PanAsset 1-6 range follows the same asset allocation process used by the existing PanDynamic model portfolios. Instead of using exchange-traded funds (ETFs), they will use a streamlined portfolio of index-tracking funds with low ongoing charges.

The portfolios will be risk-graded one to six, with total ongoing charges ranging from 0.18 to 0.23 per cent a year. The total costs, including an annual management charge of 0.25 per cent, start at 0.43 per cent per annum to users. This excludes platform charges.

The PanAsset range will replicate the asset allocation process that the group uses in its existing portfolios. The PanDefensive (one on the scale) returned 30 per cent since inception while investors in the PanAggressive (6 on the scale) portfolio earned 69 per cent since launch in 2009.

Chief executive of Evercore Pan-Asset, Christopher Aldous, said, “Getting investment costs down is a sure way to give investors even better long-term returns.”

While there is no official minimum investment for individual trades, the minimum is £500. Investors would need £10,000 to access the full portfolio.

www.pan-asset.co.uk

MM view

To keep costs down, the group will be using tracker funds instead of ETFs and it is too early to see whether it is worth choosing the low-cost option over the already well-performing portfolios in place.

However, having the portfolios available on just one platform limits who can use them as part of their portfolio. Not all investors have access to Novia and it is unclear whether the model portfolios will be expanded to be used across the likes of Ascentric, Transact and Novia.

Having a range of risk-graded portfolios opens up the model portfolios to a variety of investors, and there are grades targeted at all types of investor. They include a whole range of options including defensive, moderate growth and aggressive.

As with similar risk-rated ranges from other providers, this set offers a choice of risk and return for investors and the choice of portfolios available allows the adviser to match closely to each client.

Evercore’s existing model portfolios are strong performers, so it makes sense for Evercore to look for a lower-cost investment plan with the same successful allocation. It will be interesting to see how much performance will differ between the tracker-focused and ETF-focused portfolio and whether the low-cost option is truly worth it.