Allium offers funds for Distribution Technology users

Consultancy firm Allium Capital, which helps intermediaries to launch investment services, is launching its own fund range based around the Distribution Technology risk assessing system.

The six FP Allium Portfolio funds will be the first to track a range of six investable indices set up last year and based on the risk profiles used by Distribution Technology when it establishes clients’ investing needs.

The funds will therefore enable adviser firms that use Distribution Technology services to simply output clients into pre-designed portfolios that match the same risk system.

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Allium director Ronan Kearney said the annual management charges for the funds had been cut to 0.2 per cent, adding that the range already includes roughly £250m of assets inherited in the four existing funds.

“We’re targeting the 3,000 advisers currently using Distribution Technology’s risk planner whose clients may want passive allocation to the DT risk scores,” Mr Kearney said.

“This is the most cost-effective way of achieving that.”

The funds’ indices were set up late last year by iNDEXX Markets, which now controls Allium Capital after taking it over from adviser network Caerus Wealth last February.

The asset allocation is managed by Mansard Capital’s Leon Diamond.

The companies are all connected by being partly or fully owned by private equity business Osprey Capital, which Mr Kearney founded and who was also behind the launch of many of the underlying companies.

Mr Kearney, a former venture capital manager at Octopus Investments and business development manager at Prudential, has stepped back from his role as an investment director at Caerus Wealth to focus on the Allium funds launch.

The six products – FP Multi-Asset DRP III, IV, V, VI, VII and VIII – invest in the iNDEXX Markets indices using a swap counterparty arrangement with Goldman Sachs International.