Investments  

Smart beta for copia

Smart beta for copia

Discretionary fund manager (DFM) Copia Capital Management, which is part of the Novia group, announced its new smart beta portfolio range on 10 March.

According to Copia, this is the first smart beta portfolio proposition to enter the UK adviser market.

The DFM has partnered with US exchange traded fund (ETF) provider First Trust Advisors and US-based momentum strategists Dorsey, Wright & Associates.

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As such, the two new portfolios will provide a quantitatively driven tactical asset allocation overlay with asset classes populated using Smart Beta ETFs.

These DFM models will be available exclusively via the Novia platform from 14 March.

The Copia First Trust Smart Beta portfolio is comprised of First Trust AlphaDex ETFs and the Copia Dorsey Wright Smart Beta portfolio offers access to smart beta ETFs with technical analysis provided by Dorsey, Wright & Associates.

The Dorsey Wright Smart Beta portfolio uses other trackers where First Trust funds are not available.

In terms of pricing, Copia First Trust Smart Beta has a Copia fee of 0.3 per cent plus VAT and a First Trust total expense ratio of 0.5 per cent.

The Copia Dorsey Wright Smart Beta has a fee of 0.55 per cent plus VAT and a First Trust total expense ratio of 0.55 per cent.

Adviser View

Andrew Whiteley, independent financial adviser at Provisio Chartered Financial Planners, said he thought there would be a lot more launches like this one over the coming months.

He added: “My only concern with these model portfolios is that they (or at least the Dorsey Wright portfolio) appear to be exclusively equity focused rather than true multi-asset, which will leave the adviser having to work out the overall asset allocation for themselves.”

ruth.gillbe@ft.com