Updates to our multi-asset investment solutions

We are changing the volatility target of each of the portfolios to a percentage range of the expected annualised volatility of global equities.

We believe this change will allow for a more stable strategic asset allocation with fewer adjustments needed to manage each of the portfolios to their volatility target.

We are aligning the stated exposure to equities across each of the portfolios.

This change will result in the investment policy of each of the portfolios better reflecting the investment style adopted by the portfolio managers.

We are referencing a performance comparator for the Cirilium Passive Portfolios to align with our other multi-asset investment solutions.

We think this will enable investors to better compare  the performance of the portfolios against an appropriate peer group. We believe these sectors are appropriate on the basis that the equity exposure of each of the portfolios over time is expected to be similar to that of the average fund in the relevant sector.

We are changing the investment objective of each of the Cirilium, Cirilium Blend, Cirillium Passive, and Creation portfolios to make it clear they are one of a range of five risk-targeted portfolios, and where each of the portfolios is positioned within that range based on its specific risk level (i.e. where ‘conservative’ is the lowest risk level and ‘adventurous’ is the highest).

We believe this change will provide greater clarity to your clients about how each of the portfolios will be managed.

We are removing the wording from the investment policy of each of the Monthly Income Portfolios that says each of the portfolio ‘will typically hold a minimum of 35% in passive investment vehicles or instruments’.

The portfolios can, and will continue to, invest in passive investment vehicles and instruments. However, we believe this change will provide the portfolio managers with the flexibility to access the best opportunities available to them regardless of whether they are active or passive investment vehicles and instruments.

We are changing the investment policy of the Cirilium Portfolios to allow each of the portfolios to use derivatives for investment purposes (subject to shareholder approval).

We think this change will provide greater opportunities for the portfolio managers to deliver improved risk-adjusted returns for your clients. The use of derivatives for investment purposes may affect the risk profile of a portfolio although this is not our intention. However, each of the portfolios will still be managed to its stated volatility target.