Evercore Pan-Asset’s ETF-focused model portfolios chime with investors

Apr 13th, 2013 | By | Category: ETF and Index News

Evercore Pan-Asset (EPA) has celebrated the fourth anniversary of its model asset allocation portfolios. Launched in 2009, the London-based firm’s PanDynamic and bespoke model portfolio ranges, which exclusively use low-cost index trackers such as exchange-traded funds (ETFs), have proven very popular, attracting nearly 2,000 investors and more than £300m in assets.

Evercore Pan-Asset’s ETF-focused model portfolios chime with investors

John Redwood, Chairman of the Investment Committee at Evercore Pan-Asset.

EPA believes that demand for outsourced model portfolio solutions is set to soar as advisers look for more comprehensive investment services in the wake of the Retail Distribution Review (RDR).

Christopher Aldous, Chief Executive of Evercore Pan-Asset, commented: “Advisers struggling to meet the requirements of RDR need investment solutions which keep down costs to their clients while providing a robust and compliant investment process. Model portfolios are the future and we invite all financial planners to join the revolution.”

The PanDynamic model portfolios are available across six wrap platforms, including Ascentric, Novia, Transact, Nucleus, Platform One and Avalon, and come in six risk-graded flavours, from Defensive (lowest risk) to Aggressive (highest risk) plus one portfolio designed to deliver income. The annual management fee for each portfolio is 0.25% of assets under management.

EPA’s focus on keeping a lid on costs means that advisers can offer their clients day-to-day portfolio management for a level of risk that suits them with a total cost that can be as little as 0.5% of assets under management per year.

John Redwood, Chairman of the Investment Committee at Evercore Pan-Asset, commented: “Keeping costs low means investors keep more of the income earned and capital gains made. This is especially important at a time of very low returns in deposits and many bonds.”

For example, if advisers can save a client just 0.5% per year in fees, then over 20 years that saving could be worth £290,000 to a client investing £1m which grows at 6% per year.

The EPA team believes that advisers who are not already using model portfolios should seriously consider them.  “We don’t interfere with the relationship between client and adviser – we consider this to be essential and we place it at the heart of what we do.  Our expertise lies specifically in managing money. Our model portfolios are exactly what many IFAs operating after RDR are looking for,” added Aldous.

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