Asset Intelligence Portfolio Management (AIPM), the Midlands-based discretionary fund manager, today announced the launch of its unique, research-driven dual fund investment solution designed to address failures in the multi-sector. active.
A recent white paper published by AIPM’s sister company, Asset Intelligence Research, found that over Â£ 22bn languishes in multi-asset funds that have underperformed their peers over the past decade, many capturing more downside than upside due to asset mislabelling issues that put investors at more risk than they realize.
AIPM reports that its Gemini investment proposition, developed alongside T. Rowe Price, is designed to address these and other multi-asset failures * by providing advisors with true diversification and the ability to precisely tailor the building portfolios to align with each client’s risk appetite personal requirements.
Rather than consisting of a single vehicle or range, each Gemini portfolio is created by combining two high quality funds managed by AIPM: the VT Asset Intelligence Growth Fund and the VT Asset Intelligence Defensive Fund. The defensive VT Asset Intelligence fund is designed to provide a certain degree of capital protection during times of market uncertainty by focusing on low risk assets. The VT Asset Intelligence Growth Fund seeks to generate strong long-term capital growth by taking full advantage of global equity market opportunities.
Each of these funds contains a multitude of different strategies, providing exposure to a number of sectors and regions. The independent nature of the two vehicles allows a financial advisor to align the portfolio exactly with the specific needs and risk profile of each investor.
Gemini was created alongside T. Rowe Price, the US $ 1.4 billion global asset manager, who brings a wealth of knowledge and expertise to the underlying holdings of the VT Asset Intelligence funds.
Stefan Fura (AIPM co-founder and pictured): âThis proposition offers advisors a truly tailored way to tailor their clients’ portfolios. Instead of advisors following the norm and relying on a single multi-asset fund, they can now take control and shape a proposition that truly meets the needs of their clients – adapting to their risk appetite as per their risk appetite. needs.
âGemini actually delivers what many multi-asset funds fail to do; it maximizes growth while respecting the client’s risk profile. By using two funds, one focused on growth and the other more defensive, advisors can tailor their client’s framework to reflect their risk profile and achieve their goals. This strong active management approach provides a disciplined and risk-aware strategy that benefits the funds that make up our new proposition. “
Kel Nwanuforo (Investment consultant at Asset Intelligence): âThe problem with many multi-asset funds is that when you look under the hood, many underlying assets can all act the same during times of market stress. For example, our research has shown that global high yield bonds are often more closely correlated with stocks than with government bonds, yet many multi-asset funds classify them as âdefensiveâ assets to balance the volatility of holdings. in actions. In addition, many UK multi-asset funds have a pronounced bias towards local companies, which limits the effectiveness of their diversification.
âOur investment managers have examined a wealth of data on the actual behavior of these asset classes, and it has given us the tools to lay the foundation for building truly diverse portfolios. Gemini is a great way for advisors to access these exciting new funds and ensure that their clients’ money is being invested sincerely in accordance with their risk profile.
* The launch comes in direct response to the findings of a recent white paper published by Asset Intelligence Research, which showed that many multi-asset offerings fail to compare to their benchmark. He revealed how funds fail to deliver true diversification, invariably relying on assets that behave similarly in times of market growth and decline and being heavily weighted and biased towards the UK. . The document also identified concerns about the lack of effective active management of investments within some multi-asset funds. The full white paper, “Time for a Great Multi-Asset Reset” is available here.