Coutts has launched a new line of seven multi-asset Retail Distribution Review (RDR) compliant funds.
The multi-asset funds which cover cash, bonds, equities, commodities and property is part of Coutts’ strategy to develop its wealth management capabilities with the provision of RDR-compliant solutions, while attracting clients outside the bank’s core high net worth base.
The funds range from UK-focused funds (Defensive Fund, Balanced Fund, Growth Fund and Equity Growth Fund), and global-focused ones, with the global funds’ base currency being the US dollars and hedged share classes being available in GBP, EUR and CHF.
Coutts managing director – investment office, Leslie Gent, explained the entry thresholds (capped at £50,000, or $81,265) for the Undertakings for Collective Investment in Transferable Securities (UCITS) funds were created for Coutts’ internal client base.
Diversification with more "bells and whistles" for clients
While Coutts is mostly known as an asset allocator, Gent said the bank "had decided to bring more bells and whistles to clients to take advantage of market opportunities"; not through the historically preferred discretionary portfolio account, but through "a unitised structure".
She said the bank wouldn’t align the lowered entry-level threshold with the rest of the private bank’s strategy.
"The threshold for the funds is not tied to our strategy. The funds were designed as a core investment holding, and we recognise that our clients invest in many different products and securities such as private equity. " she added.
Coutts UK chief investment officer, Alan Higgins, and his team will manage the four UK-focused funds while the three global funds will be lead-managed by Europe CIO, Norman Villamin, and his team in Zurich.