Model Portfolios  

City Financial partners with Novia for model portfolios

City Financial partners with Novia for model portfolios

Investment management firm City Financial has partnered with Novia Global to launch a range of model portfolios targeted at international financial advisers.

The three portfolios in the range – Cautious, Moderate, and Adventurous – will be managed by City Financial’s head of multi-asset Mark Harris within pre-determined risk limits that are independently verified by risk profiling company Distribution Technology.

Global Wealth management Solutions (GWMS), a financial product marketing firm focused on global intermediaries, will market the products to international financial advisers.

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Mr Harris called the partnership with Novia an “exciting development” that will allow the company to offer international advisers a complete investment solution.

The new range will be offered in addition to City Financial’s existing multi-asset fund range, allowing greater emphasis on risk management.

“Risk management is already at the heart of our investment process, and it is logical for us to offer risk‐targeted model portfolios alongside our existing multi‐asset fund range.

“We believe we can deliver attractive returns through our established approach to tactical asset allocation and differentiated fund selection.”

Christopher Foster, partner at Pennines Independent Financial Advisers, said that while more product offerings in the international market are welcome, the three portfolios on offer might not offer clients enough choice to properly reflect their risk profile.

“I don’t believe three portfolios is enough to accurately reflect client needs, however as there is a big difference between ‘low’ and ‘medium’ in terms of risk.

“I accept you can, say, mix 50 per cent low and 50 per cent medium to achieve a similar result, but this can be unwieldy and the asset allocations may not necessarily be the same as a portfolios designed to represent a low or medium risk profile.”

julia.faurschou@ft.com