Rathbone Unit Trust Management is planning to launch the Rathbone Greenbank Multi-Asset Portfolios (RGMAPs), a range of four risk-rated, risk-targeted, sustainable investment funds.
The funds will be managed by Rathbones' multi-asset team, comprising David Coombs, head of multi-asset investments, and Will McIntosh-Whyte, who will be responsible for the day-to-day investment of the portfolios.
They will be supported by Rathbone Greenbank Investments (Greenbank), Rathbones' specialist ethical, sustainable and impact research and investment team, as well as Rathbones' fixed income and equity analysts. The new sustainable multi-asset range is expected to be launched during the first half of the year and to sit in the IA Volatility Managed sector.
These new multi-asset funds will be able to map into advisers’ investment processes across most client risk appetites, and with the industry-leading ethical and sustainable oversight of Greenbank as an authentic, independent arbiter."
To support the launch, Rathbones expects to hire an assistant into the team, an investment specialist, as well as additional analysts to support the research, ideas generation, and client communications associated with the funds.
Rathbones said the new range will invest directly around the globe, using a combination of government bonds, supra-national bonds, corporate bonds, listed company shares, structured products and derivatives.
The funds will be actively managed with a strong emphasis on managing financial, and environmental, social and governance (ESG) risk and will focus on investments with strong links to Greenbank's sustainability framework, which includes energy and climate, and health and wellbeing. Greenbank can veto investments which do not meet the funds' responsible investment policy, ensuring it is applied without bias or influence from the fund managers.
The new multi-asset range will be managed by Will McIntosh-Whyte and David Coombs, and will offer advisers a higher risk solution invested 100% in equities. Its benchmark is the FTSE World Index. Subject to regulatory approval, the name of the Rathbone Global Sustainability Fund will be changed to the Rathbone Greenbank Global Sustainability Fund. There will be no change to the investment process or fund manager. The recommended holding period remains five years.
The new range will offer investors the option of the following risk strategies:
|
RMAP* strategy (*Rathbone Multi Asset Portfolios) |
RGMAP strategy
|
Target return / Vol. target (% of FTSE Developed Index) |
Risk level |
Recommended holding period |
|
RMAP Total Return |
Rathbone Greenbank Total Return Portfolio |
Bank of England base rate + 2% Vol. target <33% |
Lower |
3 years |
|
RMAP Defensive Growth |
Rathbone Greenbank Defensive Growth Portfolio |
CPI + 2% Vol. target <50% |
Lower-to- medium |
5 years |
|
RMAP Strategic Growth |
Rathbone Greenbank Strategic Growth Portfolio |
CPI + 3 Vol. target <66% |
Medium |
5 years |
|
RMAP Dynamic Growth |
Rathbone Greenbank Dynamic Growth Portfolio |
CPI + 4 Vol. target <83% |
Medium-to-higher |
5 years |
The charges on the new funds are expected to be as follows:
|
Fund name |
Share classes |
Unit types |
Currency |
Launch price |
AMC |
Estimated OCF (UCIT) |
|
Rathbone Greenbank Total Return Portfolio |
S-class |
Income and Accumulation |
GBP |
£1.00 |
0.50% |
0.67% |
|
Rathbone Greenbank Defensive Growth Portfolio |
S-class |
Income and Accumulation |
GBP |
£1.00 |
0.50% |
0.71% |
|
Rathbone Greenbank Strategic Growth Portfolio |
S-class |
Income and Accumulation |
GBP |
£1.00 |
0.50% |
0.65% |
|
Rathbone Greenbank Dynamic Growth Portfolio |
S-class |
Income and Accumulation |
GBP |
£1.00 |
0.50% |
0.75% |
The minimum holding across all funds is £1000, with subsequent investments of a minimum of £500.
Mike Webb, chief executive, Rathbone Unit Trust Management, said: "Sustainability has rightly taken its place as a central pillar of our industry. Rathbones was a pioneer when the original RMAPs range was launched over 10 years ago as a risk-targeted range, and then again when it became one of the first to move from a fund of funds model, to invest directly and thus lowering costs for investors. Those funds now have an enviable track record.
"Subject to regulatory approval, these new multi-asset funds will be able to map into advisers' investment processes across most client risk appetites, and with the industry-leading ethical and sustainable oversight of Greenbank as an authentic, independent arbiter. We believe that this strong collaboration ensures the integrity that our clients have come to expect of us."
John David, head of Rathbone Greenbank Investments, added, "Greenbank has built up over 20 years' experience in the ethical, sustainable and impact investment and research space, and we also have a long track record of working with the Rathbone Unit Trust Management team on other mandates, through research and ideas-generation."
The launch is pending regulatory approval.
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