Architas Adopts “Style Agnostic” Approach For New Fund Range

Eliane Chavagnon

29 May 2012

Architas, the multi-manager arm of the French insurance giant AXA, has restructured its portfolio funds to offer Multi-Asset Blended, a range of risk-profiled investment solutions which draw on the benefits of active and passive managed funds.

According to a statement, the “blended” funds consist of an existing range of manager of manager funds - with assets of £850 million (approximately $1.3 billion) - and represent the completion of stage one of Architas' new proposition initiated 18 months ago, when Hans Georgeson joined as managing director.

Previously, Architas' investment proposition consisted of six risk-profiled active fund of funds and six risk-profiled passive fund of funds.

Post-Retail Distribution Review, however, the total expense ratio for the MA Blended Moderate Fund, for example, will sit around the 1 per cent mark. Overall, the MA Blended range will include eight funds, three of which as single strategy funds, and five risk-profiled funds.

Meanwhile the new multi-asset funds’ asset allocation will be driven by the asset allocation model developed by Architas in partnership with eValueFE, and as such these five risk-profiled funds will move to the IMA unclassified sector, the firm said.

“We have seen increased demand from both investors and advisors for a blend of active and passive management, especially in the lead up to the RDR, where investors are increasingly conscious of cost,” said Cedric Bucher, head of business development.