The portfolios range from a UK-focused fixed interest fund to a global equity fund, with four multi-asset funds in between, sitting at various points along the risk spectrum.
The portfolios will primarily include RLAM funds across a range of asset classes such as UK and global equities, commercial property and commodities and well as a number of fixed income categories and cash-benchmarked strategies, offering investors an absolute return. Trackers will also be used for cost efficiencies.
The funds will be actively managed using tactical asset allocation, underpinned by Greetham’s ‘investment clock’ model and be made available to retail and institutional investors.
Head of multi-asset Greetham said: “We have created a range of broadly diversified funds to smooth returns and provide resilience to unexpected shocks while giving us lots of flexibility to alter market exposures as the economic cycle evolves.
“We firmly believe in the benefits of multi-asset investing to tailor funds for different investor risk and return preferences. We aim to add consistent value over time by applying a disciplined tactical asset allocation framework.”
RLAM designed the funds in conjunction with Moody’s Analytics, complementing the group’s existing risk-targeted multi-asset pension portfolios, also run by Greetham and his team.
Launched seven years ago, the Governed Range currently has approximately £10bn of assets under management.
The new range will be risk profiled by Distribution Technology and made available through Dynamic Planner.
The funds are allocated against DT’s risk-rated benchmarks and strive for inflation-beating returns over the medium and long term.
Greetham’s investment clock is based on the understanding that the economy follows periods of expansion and contraction, overheating and then cooling off, with inflation picking up and then falling away after growth slows. Typically, each of the four quadrants, or phases, of the clock favours a particular asset class.
