L&C Novia funds make a splash in managed sector

24 November 2011 | By Amanda Smith

Discretionary fund manager London & Capital says the popularity of its managed portfolios on the Novia platform was an influential factor in the funds being made available through Ascentic.

L&C says it accounts for more than 70 per cent of DFM business on the Novia platform, which provides access to 32 DFMs. It feels this level of take-up has prompted other platforms to look at what it is doing and pursue distribution links.

The company says it has to be selective with these links because it constructs individual portfolios on the platform, rather than running discretionary portfolios that sit within a fund structure.

This means it must be possible for L&C to make quick asset allocation changes, such as moving out of funds into cash, for each portfolio using the platform’s technology.

L&C says some platforms that approached it were not equipped to do this as they lack the right technology.

L&C has also launched two income portfolios, designed to meet IFA demand for its investment process with an income focus.

The medium-risk income portfolio is targeting a 5.5 per cent yield and the higher-risk portfolio targets a 7 per cent yield.

The firm is also building up the functionality of its new website. L&C head of adviser solutions Bruce Ely-Johnston says: “The launch of our website was phase one. Phase two is the technology behind it.”

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