ABN Amro has aimed its portfolio management service at investors who want investment choice but who do not want to do the choosing themselves.
The premier funds service offers a choice of five investment strategies: balanced, capital growth, conservative, international and ethical. The strategies then invest in a range of eight multi-manager funds created for the service, and the ABN Amro cash fund.
The conservative strategy is aimed at cautious investors who are looking for income. It will invest mainly in UK equity income and bond funds. The balanced strategy is higher risk than the conservative strategy and will provide growth in addition to income. It will spread investments across UK growth, UK equity income and global funds, with smaller amounts going in bonds and cash.
The capital growth strategy takes a more aggressive approach to growth and does not generate income. It invests mainly in global and UK growth funds. The international strategy offers greater geographical diversity by investing mainly in more in global funds. Finally, the ethical strategy will invest in ethical and socially responsible funds.
Premier funds service may appeal to investors with clear objectives, who want exposure to a wide range of funds in areas that are the fund managers' strengths. Also, the multi-manager funds invest in other funds, investors are exposed to a double layer of charges which could deter some from using the service, even if it consistently picks the best funds.