The firm, which has launched Oeic funds this year based on its existing model portfolios, now has six risk-graded portfolio and one income portfolio available through Ascentric.
The PanDynamic cautious growth portfolio will invest in index-tracking exchange traded funds with 60 per cent in defensive fixed income assets and 40 per cent in risk assets including equities and property. The PanDynamic cautious balanced portfolio differs in that it invests 10 per cent more than the cautious growth portfolio in defensive fixed-income assets, and 10 per cent less in risk assets, in keeping with its lower risk profile.
Evercore’s use of ETFs means that costs are lower than portfolios that contain actively managed funds. Both portfolios have an annual charge of 0.25 per cent, but the charges do not end there.A 0.25 per cent annual platform charge is payable, alongside additional charges for the Ascentric wrapper products through which advisers access the PanDynamic portfolios.
The new portfolios allow all risk profiles to be catered for and provide choice for advisers using Ascentic who want active management only at the asset allocation level. The popularity of these portfolios will depend partly on advisers’ views of the active management versus passive investment debate Not all advisers are fans of passive funds that can only follow the direction of the market, while others choose not to pay for actively managed funds where higher charges potentially wipe out returns.