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L&C cuts TER for graded funds

Discretionary fund manager London & Capital has reduced the total expense ratio across its 10 risk-graded managed portfolios by an average of 0.5 per cent.

The portfolios cater for the full range of client risk profiles, with no minimum investment requirements. Each portfolio blends funds investing in traditional assets such as bonds and equities with exchange-traded funds and absolute return funds. The portfolios can also have direct holdings in assets.

London & Capital says the portfolios, which were launched in January 2010, have performed well in their first year. Model portfolio 10, the highest-risk option, had an 8.25 per cent target return but delivered over twice that at 17.52 per cent over the year. Volatility in the portfolio was also more than 6 per cent lower than the 17.75 per cent target.

Head of adviser solutions Bruce Ely-Johnston expects the combination of performance and the cost reduction to boost interest in the portfolios.

He says: “We always believed the managed portfolios would make a compelling proposition, given their performance, cost and flexibility. Asset flows are strong and with more intermediaries approaching us regarding our service, we have moved swiftly to make our proposition even more competitive.”

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