RC Brown has launched it’s discretionary select portfolio service, designed to provide high net-worth individuals with greater deviation from traditional benchmarks. With a minimum investment of £200,000, the SPS will offer four strategies: Cautious, Cautious Balanced, Balanced, and Growth.
Wilf Blake, formally of Quilter Cheviot, has been appointed fund manager. His initial allocations differ substantially from the benchmark, with the sample ‘Balanced’ strategy overweight in UK equities at 22.1%, but underweight in US equities, at just 12.5% exposure.
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He is also underweight high-yield bonds. As of 30 September, Blake’s portfolio composition had 57.3% invested in equities, 23.6% in fixed interest and 6.4% in cash, with the remainder spread across hedge/absolute return funds, precious metals, and mining companies.
Blake said: “US markets have delivered exceptional returns, but valuations in some of the largest technology companies are now looking increasingly stretched. As a house, we are concerned about the concentration of global indices and the extent to which investors have become dependent on a relatively small number of stocks.
“We are finding better value elsewhere, particularly in the UK and parts of Asia and emerging markets, where valuations in some areas remain historically low. We believe there are good opportunities for investors who are prepared to look beyond the consensus.”
Despite the relative freedom permitted by the discretionary label, the SPS will operate within RC Brown’s risk parameters. Portfolios will invest directly in UK equities and government bonds, with overseas exposure routed through investment trusts, funds and ETFs. The fund will also explore UK company placings and IPOs.
Annual discretionary management charges will be 0.8% for family groups with assets up to £2m, though this will be reduced for larger portfolios.
