The changes will be to its PanDynamic defensive, balanced and growth model portfolios as well as its Oeic funds.
Only the higher risk PanDynamic Aggressive model portfolio and Aggressive OEIC fund will retain an allocation to what the company describes as “properly-structured, well-collateralised” synthetic ETFs where an asset class cannot be efficiently accessed by other means.
The move follows warnings from the Financial Stability Board, the Financial Services Authority, the FSA and the Bank of England. The Bank of England’s report a week ago suggests it is possible that “the additional risks associated with synthetic replication might not be fully understood by investors who are attracted by the lower costs”.
Founded in 2008, Evercore Pan-Asset’s investment approach is based on a dynamic asset allocation process that uses a passive implementation mainly through index-tracking ETFs.
