Discretionary investment manager Tilney for Intermediaries has unveiled plans to launch a range of smart beta multi-asset funds in early 2016, subject to FCA approval.
The risk-graded and low cost range will use smart beta or advanced strategy following increasing demands from advisers.
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The funds will combine active asset allocation with investments into smart beta funds to satisfy adviser demand for low-cost investment solutions that offer more than traditional passive exposure.
The new smart beta funds combine passive and active positions with weighted exposure based on fundamental factors such as book value, dividends, earnings, cash flow and balance sheet strength.
Tilney for Intermediaries head Miles Robinson said: "There’s a clear increase in demand from advisers for lower-cost investment solutions, but many advisers also recognise there are significant drawbacks with traditional passive products which leave their clients assets fully exposed to the risks of valuation bubbles and also losses in overall market downturns.
"We plan to combine the same discipline and successful approach to active asset allocation which has proven successful with the existing Multi-Asset Portfolio fund range with investment selection that makes use of the next generation of passive investment strategies.
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By GlobalData"Use of these strategies will enable us to better reflect our thematic views, while mitigating the costs and uncertainties associated with selection of actively managed funds. The portfolios will represent an evolution in the market from the plethora of traditional passive-only, multi-asset funds."
The company will disclose fees on the range and more details in early 2016.
