InvestmentsMay 13 2013

David Jane launches risk-graded model portfolios

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ByMatthew Jeynes

Former M&G star David Jane has launched three risk-graded model portfolios for the Novia platform.

Darwin Investment Managers, which Mr Jane set up in 2010, has launched the three models, Defensive, Balanced and Aggressive, to take advantage of the increased demand from advisers for outsourcing options.

The portfolios will have a minimum investment of £10,000, an annual management charge of 0.3 per cent and a targeted total expense ratio of 1.2 per cent.

The Balanced strategy will be run in a similar way to the £30m Darwin Multi Asset fund, which was launched in June 2011 and is top quartile in the IMA Mixed Investment 20-60% Shares sector in the past year.

Mr Jane said the Aggressive strategy would be run in a similar way to the growth multi-asset mandates that he ran at M&G.

The range of model portfolio offerings on platforms have so far been dominated by the likes of wealth managers and private banks, which have the models as alternatives to their bespoke offerings, but Mr Jane said his retail background set the models apart.

“Advisers want a name they can recognise with a track record that they can see. While there are a lot of people offering a model portfolio service there is not a single branded retail manager. We will be offering retail fund performance on model portfolios,” Mr Jane added.