Lombard International Assurance has teamed up with multi-manager specialist Russell Investments to introduce a range of eight risk-graded multi-manager funds aimed at high-net-worth individuals.
Each of the Lombard funds invests in between seven and 10 Russell multi-manager funds, which in turn invest in a range of funds from over 50 investment managers.
The Lombard Russell conservative fund has the lowest risk grading and will invest mainly in Russell's sterling bond fund. At the opposite end of the spectrum is the Lombard Russell aggressive fund which invests entirely in Russell's multi-manager equity funds across the UK, US, Europe and the Far East.
Three funds – Lombard Russell moderately conservative alternative fund, Lombard Russell moderate alternative fund and Lombard Russell moderately aggressive alternative fund – will invest in hedge funds.
There is no set charging or commission structure for the funds. Instead, commission is agreed between the IFA and client, then built into the charges, which vary according to the composition of the portfolios.
Russell has also developed a free web-based service for IFAs using the Lombard funds. The Russell proposal generator works by asking IFAs 10 questions about their client's requirements and risk tolerance. This generates a full report within 15 minutes which suggests the most appropriate fund for the client. Proposed asset allocation and projected returns are also illustrated.
UK retail investors can currently access Russell's multi-manager skills only through Lombard and Scottish Widows as pension funds form the bulk of its business.
Lombard head of UK sales Andrew Good says: “We have had a relationship with Russell, which is one of the most experienced manager of managers worldwide, for four-and-a-half years. We have offered something similar for a while but these funds are different. We take on the cash management, so portfolios will rebalance automatically when market conditions change.”