General Insurance Article - Architas actively cuts its passive pricing


 Architas have announced it is cutting the price of its Multi-Asset Passive fund range. The new OCF on the clean share class will be capped at 50bps compared to the existing clean share class price of 65bps.

 In addition Architas is cutting the upfront charge on its Zero AMC share class from 2% to just 1%. The only additional charge on the Zero AMC share class is some ongoing costs for underlying funds and administration, capped at 0.2% per annum. This has the potential to deliver an ongoing saving for longer term investors, who remain invested in the Architas Multi-Asset Passive fund range for more than four years.

 The risk profiled funds take a multi-asset approach, investing in a portfolio of passive strategies to gain exposure to a broad range of asset classes including global and UK equity, fixed income and UK property. The Architas Multi-Asset Passive fund range is based on a long term strategic asset allocation provided by eValue.

 Cedric Bucher, head of business development, said: “Since launch our passive range has proved extremely popular with advisers, and their clients. The disciplined approach of the risk model ensures an outcome in line with clients’ risk expectations, while the outsourced strategic asset allocation removes emotion. The multi-asset, fund of funds approach also gives greater potential for diversification with access to a full range of passive vehicles. Our unfettered approach offers us the opportunity to take advantage of the fierce competition between passive investment managers and the resulting ongoing price cuts, which we pass on to our investors.

 “We are now able to offer advisers, and their clients, access to all these benefits at a reduced, clear and transparent cost. This includes our innovative new pricing structure that offers a Zero AMC with a 1% upfront charge and ongoing annual costs capped at 0.2%. This could suit those looking to invest for the long term.”

 The Architas Multi-Asset Passive range consists of six passive funds of funds managed by senior investment manager Stephen Allen. The funds are all risk profiled and administered according to the forward looking eValue asset allocation model. From this framework, the Architas investment team constructs the portfolios via a range of passive vehicles, such as trackers and exchange traded funds.

 The Funds utilise a fund of funds approach, investing in a diverse range of index tracker funds, which in turn hold assets to replicate their chosen indices. This enables the Funds to be diversified across a variety of sectors, industries, countries and asset classes as well as emphasising the importance of asset allocation to achieve the optimal blend of underlying holdings.

 Architas understands that advisers use a number of different risk profiling models which is why they have worked with Distribution Technology, Finametrica and Morningstar to provide mapping information of how its 1-7 risk-profile scale fits within alternative models.

 The reduced price share classes will be available across a variety of adviser platforms.  

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