The average passive weighting across its four risk-rated portfolios has risen from 5% to 30% with charges falling from a range of 1.10-1.36% to 0.78-0.95%.
|
Fund name |
Old OCF (%) |
New OCF (%) |
Benchmark |
|
MGTS IBOSS 1 |
1.10 |
0.78 |
IA Mixed Investment 0-35% Shares |
|
MGTS IBOSS 2 |
1.22 |
0.80 |
IA Mixed Investment 20-20% Shares |
|
MGTS IBOSS 4 |
1.32 |
0.93 |
IA Mixed Investment 40-85% Shares |
|
MGTS IBOSS 6 |
1.36 |
0.95 |
IA Flexible Investment |
Driven by client and regulatory demand for lower costs, IBOSS co-founder and manager Chris Metcalfe said he was able to cut the OCFs by increasing the passive weighting into the portfolios, while maintaining the same stated objectives and aims.
For example, in domestic equities, BlackRock 100 UK Equity Tracker and HSBC FTSE 250 Index have been introduced, alongside managers such as MFM Slater Growth and Unicorn Outstanding British Companies, which are both bottom decile in terms of correlation to the wider sector.
Metcalfe said: “We are very aware these funds may be 1st or 4th decile, but what we’ve always done is try to use managers who on balance have got most things right more of the time over the longer term.
“We also continue to use very high conviction funds such as Man GLG UK Income, JOHCM UK Dynamic and Chelverton UK Equity Growth.
“It has been about trying to work out where the real value add is and to try and get away from fairly blunt instruments like correlation to benchmark or active share, and try and take into account the market realities”.
