Due to the increased demand for the blended range percentage flows into the passive range were down slightly at 50%, from 55% in 2012 while the active range also saw a slight drop from 32% in 2012 to 27% in the first six months of 2013.
Hans Georgeson, managing director, Architas, says: “During 2012 we saw a rise in flows into our passive fund range, which suggested cost was a key factor. These latest figures suggest that charges remain important for advisers but they still recognise the potential benefit for clients of active management.
“The blended range combines passive and active funds in one, offering the best of both worlds across asset class, sector and geography. All our ranges utilise the same asset allocation model but the active and blended ranges can take tactical bets within the target volatility bands where the managers see the opportunity to actively invest for growth. The blended range uses both active and passive instruments to provide value-for-money exposure to market beta and potential outperformance through alpha.
“However, advisers still clearly value the full active management approach we provide with over one quarter (27%) of gross sales going into this range of risk rated funds during the first six months of 2013. Through the active decisions taken by the investment team the active range has consistently added more value to client holdings, net of fees, than both the blended and passive ranges.”
Since its launch four years ago, Architas has built a reputation for delivering simple, transparent, RDR-ready investments. Its core proposition consists of a range of risk-profiled funds. The proposition is popular thanks to its fit with RDR requirements – in particular, relating to suitability – but also due to its focus on the end-to-end investment process.
