The Ascentric JOHIM growth, balanced, cautious and defensive portfolios comprise three funds that were created for the firm’s discretionary fund management service, the Tailored Allocation Programme. These underlying funds are JOHIM sterling bond, JOHIM equity and JOHIM alternatives and the allocation to each underlying fund vary between portfolios to reflect their different risk profiles.
JOHIM sterling bond aims for growth and income by investing globally in government and corporate bonds, with the ability to invest up to 20 per cent of the portfolio in bonds denominated in overseas currencies. JOHIM equity is a fund of funds that aims for growth and income by investing in a global portfolio of 20 to 30 equity funds or structured products listed on a regulated market.
JOHIM alternatives provides exposure to alternative asset classes such as hedge fudns, commodities, traded life policies and property with the aim of producing consistent returns with lower volatility than equities.
The minimum investment for the tailored allocation programme is £250,000 but the new model portfolios enable investors to access a mix of the underlying funds at a much lower level of £1,000.
JOHIM believes the portfolios will be useful to IFAs given that the retail distribution review legislation is on the way. It also points out that the portfolios are cost effective in that there is no overall charge for actively managing the portfolios, as opposed to the underlying funds.
The presence of two funds of funds within the portfolios also provides diversity that would not be achieved if they were made up of three single manager JOHIM funds.
However, the portfolios are available only through the Ascentric platform and not all IFAs who are interested in them will use this particular platform.