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Momentum launches three risk-profiled funds that target inflation

Momentum has launched a trio of risk-profiled funds that target a return that beats inflation.

The series, called the Factor Series, consists of three funds that have been risk-rated three, four and five by Distribution Technology.

They target beating inflation over the medium to long term.

The funds will be run by lead portfolio manager James Klempster. He will be supported by chief investment officer Michael Allen and Momentum’s asset allocation and manager research team. The team currently manages over £1.7bn in multi-asset mandates.

Klempster says: “Given the extraordinary volumes of liquidity that have been pumped into the markets of late, inflation is very likely to become an important consideration for investors.”

Informed Choice managing director Martin Bamford says the proposition is likely to appeal to advisers who do not have their own investment philosophy and process already in place.

He says: “Outsourcing asset allocation decisions is something that some advisers feel comfortable doing, although many now prefer to have control over this important element of the value chain.”

He adds firms that choose to outsource should understand how the funds are managed in a lot of detail.

He says: “Transparency is essential in order to avoid the kind of mistakes that have been made by IFAs in the past selecting unknown investment propositions.”

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