Square Mile Investment Services has launched the Square Mile Passive Portfolios.
The range consists of six ‘low-cost’ portfolios with risk/return profiles varying from defensive to speculative.
The firm said the portfolios combine the asset allocation expertise and fund analysis of Square Mile’s investment management and research and consulting teams. The ongoing charges figure (OCF) for the offerings is 0.25%.
Portfolio construction will draw on the strategic asset allocation that Square Mile’s team applies to its broader range of bespoke portfolios, with tactical tilts to take advantage of shorter-term opportunities.
See also: Square Mile adds equity fund research manager
Each portfolio will hold around 20 funds across UK government and corporate debt, international fixed income, global high yield and UK and international equities.
They will only invest in passive strategies rated ‘Recommended’ by Square Mile.
The full range is as follows:
| Defensive | 25% – 40% equity exposure |
| Cautious | 40% – 55% equity exposure |
| Balanced | 53% – 68% equity exposure |
| Growth | 65% – 80% equity exposure |
| Adventurous | 78% – 93% equity exposure |
| Speculative | 90% – 98% equity exposure |
The portfolios will be listed on Aviva and Transact, but Square Mile will also make them available on advisers’ preferred platforms.
Scott Dakers, business development director, said: “With the introduction of Consumer Duty, advisers face the decision of opting for manufacturer, co-manufacturer or distributor status.
See also: Liontrust shareholders approve GAM acquisition
“For many, distributor status is very appealing as, although they forfeit any involvement in the design and implementation of investment portfolios, it can reduce some regulatory oversight.
“We therefore believe this range of Square Mile branded and managed passive model portfolios will be a compelling proposition for those advisers assuming distributor status following the implementation of Consumer Duty.”
