Ingenious Asset Management (IAM) will now provide the operational functionality underpinning Investment Quorum’s risk-rated model portfolios, allowing the latter firm to dedicate more time to its bespoke services and growing advisory business.
In terms of portfolio construction and asset allocation, the discretionary investment model portfolios will remain driven by Investment Quorum and its investment committee, led by chief investment officer Peter Lowman.
The overall arrangement will be reviewed annually but IAM will report monthly to Lowman to ensure a close awareness of how the partnership is working, as well as drawing on its additional expertise and due diligence.
Tighter controls
Investment Quorum chief executive Lee Robertson explained as tighter controls were required under the RDR it made sense to maximise operational efficiencies where possible, and he had selected Ingenious rather than one of the larger back-office providers as he felt the interests would be more appropriately aligned by working with a smaller firm.
Clients will see no change to costs; to Investment Quorum’s designated mandates; or the investment management process.
Robertson said that he would not be applying the same principle to the higher level accounts in his bespoke or discretionary services because it would open up the potential for influence by a third party that would not be the case with the risk-based models.
While Investment Quorum offers its six risk-rated options, Ingenious also offers three: a defensive, balanced and growth funds. IAM offers an income strategy and charity model portfolio as well as a specialist model portfolio run across seven fund platforms with a minimum investment of £10,000.
Ingenious’ range includes six multi-asset portfolios ranging from defensive to adventurous with a 20-100% maximum equity weighting.
Its income and growth offering will hold an 80% maximum equity weighting and is classified as moderate to high, in terms of the risk appetite it suits.
Robertson added: “As a boutique business operating in a highly regulated environment we are always looking for operational efficiencies and are well known for continually seeking ways to build upon and enhance our client proposition.
Perfect partnership
“This administrative arrangement will allow our CIO more time to concentrate on our rapidly growing advisory and bespoke investment mandates as well as taking the hugely important oversight function on our asset allocation policy and mandate adherence.”
Guy Bowles, chief executive at Ingenious Asset Management said he believed his firm’s skills and experience were ideally suited to meet the requirements of working alongside Investment Quorum on their client investment mandates.
“In particular our shared belief in the benefits of global, multi-asset investing and our expertise in managing risk make this a perfect partnership,” he added.
