L&C launches risk-management portfolios

Richard Leigh, founding partner and head of the firm’s Adviser Solutions division, said: “While most models in the industry focus on third-party or multi-manager funds, we have responded to demand by bringing this new offering in-house with a tried and tested formula focusing on risk management and capital preservation.”

He said the global model portfolios, which use proprietary funds, would suit advisers focusing on “wealth preservation for their clients over the long term”.

The portfolios have been given distinct risk and return objectives with the aim of allowing advisers to split clients into appropriate risk categories.

They will sit alongside 10 managed portfolios that were introduced to the market in 2010. However, London & Capital insists its investment desk will have access to “additional risk management levers” with the new portfolios.

Mr Leigh said these include greater stock selection, daily visibility of underlying risk exposures and the ability to manage risk and volatility through the use of derivatives.

The portfolios use a mixture of five underlying London & Capital funds and are available on the Novia, Transact, True Potential and Seven Investment Management platforms.

London & Capital does not charge a discretionary management fee to manage the models, but there is an “expected total fee” of 1.29 per cent, including VAT, an underlying fund charge of 1 per cent and administration expenses of approximately 0.29 per cent.

Adviser view

Martin Hill, director of Chreshire-based TWP Wealth, said: “The underlying funds are London and Capital’s own internal funds. Rather than outsourcing the management of funds, the managers are doing it themselves, which has an advantage.”