Architas launches trio of multi-asset passive funds
Architas Multi-Manager ("Architas") announces the launch of three new Sterling OEIC funds to complete its multi-asset passive (MAP) fund range to cater for investors with differing attitudes to risk.
The three new funds were launched in response to investor demand for a fresh approach to diversification and index-tracking. This takes the total number of Architas MAP funds to six:
Architas Dynamic Multi-Asset Passive Fund (new fund)
Architas Growth Multi-Asset Passive Fund (new fund)
Architas Reserve Multi-Asset Passive Fund (new fund)
Architas Adventurous Multi-Asset Passive Fund
Architas Balanced Multi-Asset Passive Fund
Architas Cautious Multi-Asset Passive Fund
Each of the funds within the Architas Multi-Asset Passive Fund range invest in a variety of tracker funds as opposed to mirroring one index, thereby offering a broad exposure to different sectors, industries, countries and asset classes. Architas' investment team closely monitors both the underlying funds and the asset allocations to ensure they are on track to meet their investment objectives, rebalancing where necessary in accordance with strict risk tolerance and asset allocation criteria.
Caspar Rock, chief investment officer, Architas, said: "Many investors find passive funds easier to understand because they can be easier to research and monitor than actively managed funds; they've been popularised because of their simplicity and transparency. Tracking several indices means you're not relying on the performance of a single index, and this can provide distinct diversification benefits. It's a logical way to invest passively and we're seeing demand from investors across all risk profiles looking to strike a balance between active funds and cash deposits."
Architas has outsourced the asset allocation strategy to eValue FE, the global specialists in financial modelling software solutions powered by the Towers Watson Global CAP: Link asset model. The underlying funds are selected by Architas' investment team based on quantitative and qualitative factors such as the investment style and fund's ability to track its chosen index.
The funds are modelled to strict pre-set tolerance limits according to their risk profiles and the Architas investment team actively manages cashflow on a daily basis, ensuring that tolerance limits are adhered to as well as neutralising daily market movements. The model itself is formally reviewed on a quarterly basis to account for asset class movements, so that investment in a fund remains true to the given risk profile.
For more information, visit axa.co.uk.