SC Davies launches global multi-asset funds ahead of RDR

Boutique private bank SC Davies & Co is to launch a range of global multi-asset funds for the retail market.

The wealth management firm, established in 2004 by chief executive Simon Davies (pictured), is aiming to pick up business from the intermediary community looking to outsource investment management ahead of the retail distribution review.

Davies said a number of IFA businesses have expressed a wish to re-engage with their clients by moving them into an actively managed portfolio service.

He added: ‘We intend to be among the first manufacturers of products to work with intermediaries to find ways of blending our fund so that we can meet clients’ own individual risk profiles.’

Multi-asset portfolios

Subject to FSA approval, SC Davies’ UK domiciled Oeic structure is set for a November launch and will have three sub funds: IM Mosaic Global Equity, IM Mosaic Global Fixed Income and Mosaic IM Global Alternatives.

The portfolios will be invested mainly on a fund of funds basis with active use of exchange traded funds. All three structures will be currency hedged and offer sterling, dollar and euro share classes, with both institutional and retail options available. Outside investors and SC Davies’ private clients, meanwhile, are to seed the funds with £100 million.

Davies said the portfolio managers will be using the firm’s ‘Information Mosaic’ style of investing, which is value-based and relies on ‘deep due diligence’, ‘behavioural finance’ and ‘market intelligence’.

He added: ‘Intelligence-led investing refers to part of our process focusing not just on financial research but also on intelligence gathered on geo-political and international trends – we believe this also helps set apart our DNA from the peer group.’

The funds are set for a November launch and will have a minimum investment limit of £5,000 or currency equivalent, while the total expense ratio will be about 1.75%.