Architas’ multi-asset blended fund range has now hit £1bn combined assets, following its launch just over two years ago.
The specialist investment house within the Axa Group said that the multi-asset blended range was launched “to address the dilemma faced by many investors in choosing between active and passive investing”.
The blended approach is designed to provide a middle ground between a low-cost passive option which sacrifices the potential for any outperformance, or a potentially higher return through active management with higher fees.
Architas said in a statement that at each stage - strategic asset allocation, tactical asset allocation and fund selection - the manager can make an active choice as to whether the proposition will be actively or passively managed.
Sheldon MacDonald, senior investment manager at Architas, said: “In order to exploit the advantages of active and passive investing, our blended range maintains core exposure to the main asset classes through passive vehicles, delivering market performance in the most cost-efficient manner.
“Potential for outperformance is provided by investing in carefully selected active vehicles. It’s essentially the best of both worlds.
“The decision to introduce an active vehicle rests purely on whether doing so will add alpha. In our blended range, when using active funds we have a clear preference for high conviction, high potentially performing funds aiming to deliver market-beating performance.
“We do not want to be paying active fees for closet index tracking.”
