7IM has launched what it is calling its “most adventurous” model portfolio yet, targeting investors looking to take on a higher degree of risk for greater returns.
It completes the adviser platform’s blended model portfolio service, which focuses on passive investments - typically with a higher allocation to tracker funds and exchange traded funds.
To begin with, the new model portfolio will only be available via 7IM’s platform but the firm does have plans to launch the model portfolio on other platforms in the future.
It carries an annual portfolio fee of 0.25 per cent, with ongoing costs of the underlying holdings ranging from 0.20 to 0.40 per cent.
“The new ‘Blended Adventurous Plus’ model portfolio will offer advisers the perfect option for clients that have a greater risk appetite in the hope of achieving greater returns,” said 7IM’s intermediary managing director, Verona Kenny.
“The offering builds on our existing Blended MPS range, which uses the same active asset allocation process as our active models, but the entire asset allocation is implemented with passive and smart passive investments to keep costs down.
“The launch of this new model underlines our commitment to listen and respond to client demand, particularly in an environment where some individuals are looking to generate stronger returns in a challenging economic environment.”
Last month, 7IM made changes to its cautious and balanced portfolios in a bid to decrease the fixed income allocation and replace it with alternatives.
The group has been increasing its allocation to alternatives over the past few years, including Reits, as a diversifier.
7IM manages some £18bn assets. It is reportedly set to be sold later this year for around £400mn by its owners Caledonia Investments, which bought the platform back in 2015.
ruby.hinchliffe@ft.com
