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New Skandia funds aim to cover the Spectrum of risk

Skandia is launching a range of six funds that will offer risk-targeted investment.

The Spectrum range launches on April 28 and will invest in both fund of funds and manager of manager mandates.

The portfolios will allow advisers to choose appropriate risk-profiles by accessing Skandia’s 10 risk levels designed in conjunction with Watson Wyatt.

The funds will be placed in volatility bands starting at level three and rising up to eight, which Skandia says accounts for more than 95 per cent of investor demand.

The funds will not be classified in any sector as they will be benchmarked against volatility targets for each fund. Each fund will typic- ally cover 11 asset classes with 20 or more managers held, these include institutional fund managers which are not generally accessible to retail investors.

The funds will be automatically rebalanced to ensure they remain in line with the stated asset allocation.

Head of investment marketing Graham Bentley says a big advantage of using the funds is that rebalancing of the portfolios takes place within the funds and therefore does not attract capital gains tax liabilities.

He says: “We feel this is an ideal ready-made solu- tion that helps advisers by enabling them to meet a client’s investment goals efficiently by matching risk tolerance to a risk-controlled investment solution.

“Pricing has yet to be decided but will be competitive with other alternative multi-manager funds.”

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