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GAM discretionary funds launch for IFA market

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GAM has rolled out its discretionary fund management service to the IFA market.

The Model Portfolio Service comprises five risk-rated multi-asset funds which sit within the group’s Star range, which includes the GAM Star Balanced, GAM Star Cautious, GAM Star Defensive, GAM Star Global Equity and GAM Star Growth funds.

The Dublin-domiciled funds will be run by investment director Charles Hepworth and investment manager James McDaid, who both joined GAM from Quilter last year to establish MPS.

The MPS funds are open architecture and have strict volatility targets. GAM has teamed up with Distribution Technology, which is responsible for the risk ratings.

Investors will be able to access the funds through segregated accounts or through Personalised Collective Accounts.

The minimum investment in MPS is £25,000, or £5,000 through platforms. The funds levy an annual management charge of 0.85 per cent and a total expense ratio of between 1.6 per cent and 1.8 per cent.

Hepworth says: “There are five different strategies. That number is the sweet spot for model services; if there are any more it becomes confusing.

“These funds are different from other multi-managers as there is not so much homogeneity in the top 10. Other multi-manager funds are drawn to common names.”

AWD Chase De Vere head of communications Patrick Connolly says: “Many companies moving into the discretionary world do not have much to offer to either intermediaries or direct investors and their services have high charges and fairly mediocre performance. GAM is an exception, as a strong and well-managed investment company.”

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