From time-to-time, we interrogate the positioning of our Portfolios to ensure alignment with their stated investment objectives. Occasionally, this interrogation leads to changes in our manager selection decisions. This is the case now.
Our manager selection process is based on a rigorous quantitative and qualitative assessment of the managers available on the Glacier International and Ninety One Global Access platforms. With the recent addition of the Ninety One Global Multi-Asset Income Fund, specifically its GBP class, to these platforms and to our Offshore House Views, it was considered an opportune time to reconsider the manager allocations for the Global Cautious GBP Model Portfolio.
The NFB AM Investment Committee has switched the exposure from the Janus Henderson Cautious Managed Fund to the Ninety One Global Multi-Asset Income Fund and has rebalanced toward an equal weighting across the five managers in the Portfolio. Reasons for the switch include Janus Henderson’s relative underperformance and Ninety One’s lower risk characteristics, availability of clear, consistent currency allocation data and S65 approval. The Ninety One Fund is also fully GBP-hedged and therefore aligns well with the GBP nature of this Portfolio. The Ninety One Fund’s TER, however, is 25 basis points higher and the switch is anticipated to lift total weighted TER’s from 0.98% to 1.03%.
The switch will also bring total weighted equity exposure back under the mandated maximum of 40%.