7IM launches new range of ultra-low cost model portfolios
Seven Investment Management (7IM) today announces it has launched a range of five ultra-low cost, multi-asset passive model portfolios.
Called the 7IM Pathway range, this selection of model portfolios aims to offer advisers a simple way to create a well-diversified portfolio of passives for their clients for just 0.15% (plus underlying investments) per annum.
Managed by 7IM’s experienced investment team, the Pathway range will utilise 7IM’s robust strategic asset allocation framework and risk management process, combining different asset classes to optimise returns for each of the five levels of risk.
|
Asset Allocation |
Pathway 1 |
Pathway 2 |
Pathway 3 |
Pathway 4 |
Pathway 5 |
|
UK Equity |
10% |
17% |
20% |
26% |
28% |
|
US Equity |
8% |
14% |
20% |
25% |
26% |
|
Japan Equity |
3% |
4% |
8% |
10% |
12% |
|
European Equity |
4% |
5% |
9% |
10% |
12% |
|
Emerging Markets Equity |
3% |
4% |
7% |
10% |
15% |
|
Global Government Bonds |
11% |
8% |
5% |
2% |
‒ |
|
Gilts And Government-Related Securities |
7% |
5% |
3% |
‒ |
‒ |
|
Global Corporate Bonds |
33% |
23% |
8% |
2% |
‒ |
|
Global High Yield |
6% |
7% |
5% |
4% |
‒ |
|
Global Inflation Linked Bonds |
4% |
3% |
3% |
‒ |
‒ |
|
Emerging Market Debt |
6% |
4% |
5% |
4% |
‒ |
|
Real Estate |
‒ |
3% |
5% |
5% |
5% |
|
Cash & Money Markets |
5% |
3% |
2% |
2% |
2% |
The range of model portfolios will be rebalanced quarterly, with the flexibility to change the asset allocation at any time to ensure they are still aligned with the overall strategic asset allocation.
Initially, the 7IM Pathway model portfolios will be available on six platforms – 7IM, Novia, Transact, Standard Life, Aviva and ARC (Aegon) – with other platforms to closely follow. They are also available as part of 7IM’s award winning Retirement Income Service and Discretionary offering.
Verona Kenny, Managing Director of Intermediary, 7IM comments:
“7IM is a pioneer when it comes to providing passive investment solutions to the retail market, using passive and smart passives in funds, models portfolios and discretionary services since 2008. Furthermore, 7IM has always strived to not only be clear and transparent about its charges but also to continue to drive down costs in an economical manner to provide the best product we can at the most competitive price for advisers and their clients.
“The launch of the 7IM Pathway range sees us building on this reputation whilst responding to the changing market we work in to deliver a very competitively priced multi-asset passive solution.
“It means clients can have access to our investment expertise and rigorous risk management process in an extremely cost-effective format.”
Martyn Surguy, CIO of 7IM adds:
“As we head into an environment of lower expected returns following a prolonged bull market, we believe it is the perfect time to launch 7IM Pathway, a low cost range of volatility managed, diversified portfolios made up of passives.
“Importantly, the 7IM Pathway model portfolios are underpinned by our robust strategic asset allocation process which has a demonstrable track record in controlling the downside while delivering strong returns with real diversification benefits.
“In other words, we believe this new range provides you and your clients with a steady hand to navigate what could be turbulent times ahead.”
Important information:
Our investment approach is a long term one which means we may not be suitable for investors who wish to invest for less than 5 years. There can be no guarantees. The value of investments may go up and down and you may get back less than you invested originally.