Newcastle adviser to launch DFM business

Newcastle adviser to launch DFM business

Newcastle-based financial adviser Ian Lowes is to expand his business with the launch of a discretionary fund management arm.

Lowes Group has assets under management of £900m split across advice and asset management operations.

Following the launch of the DFM within the Lowes Investment Management business the investment staff from advice arm Lowes Financial Management will switch to the new entity and continue to supply the same investment services to the advice firm.

In addition, the business will launch two discretionary managed portfolios, which will initially be available on the Zurich platform, with further portfolios planned for the future. 

The first portfolio is designed for investors who want a regular income, and will have an ongoing charge of 0.36 per cent.

The second portfolio will invest either wholly or mostly in structured products, including holding the structured products fund which Lowes Financial Management operates.

Structured products are derivatives which allow an end investor to take a view on the direction of a stock market without having to own any of the share on the market.

For example, a structured product may commit to paying out if a market stays above a certain level, even if that level is lower than that of the market right now, therefore offering downside protection.

Ian Lowes, managing director of Lowes Group, said: “We feel that the defined nature of the holdings within structured product funds offer an excellent opportunity to benefit from the recovery in the stock markets when it comes. 

"We have been an influential force over the years within the retail structured product arena and are now applying this knowledge within our fund. We believe that combining our approach with others in a portfolio will serve investors well in the coming years.”