Cirilium Passive Portfolios enhanced with alternative assets

We’re pleased to announce some recent enhancements we’ve made to the Cirilium Passive Portfolios.

These exciting changes, which include adding the Goldman Sachs Absolute Return Tracker fund to the Cirilium Passive Portfolios, give your clients access to a wider investment universe at no extra cost.

This is the first time an alternative passive fund has been used in the range and means Quilter Investors is one of the first portfolio managers to offer you and your clients exposure to alternatives in a passive fund of funds structure.

Sacha Chorley, co-portfolio manager, explains why the new fund has been added:

“We always want to improve our product offering to help deliver strong and consistent returns. The broader array of investments now available mean we can expand the range of asset classes in the Cirilium Passive Portfolios.

At this point, it means adding alternatives to the portfolios in the form of hedge fund replication strategies, but further down the line there could be more additions too if we believe it would improve risk-adjusted returns for clients.

“Hedge fund exposure is not widely available in passive fund of funds, but we believe multi-asset portfolios across active, passive, and blended strategies should have all the tools at their disposal to enhance diversification to help portfolios perform well in a variety of market environments.”

CJ Cowan, co-portfolio manager, explains why Goldman Sachs was chosen:

“We have been really impressed by the team at Goldman Sachs and the processes they have in place for this strategy. It is a highly liquid and transparent tracker fund and will provide diversification to the traditional equity and fixed income asset classes.

“Our scale gives us great opportunities to work with other asset managers to launch new funds. Alternatives are such a diverse and interesting asset class which brings a number of benefits to portfolios, and we are proud to be able use our existing relationships to find new ways to help deliver good outcomes.”

What is the new fund?

The Goldman Sachs Absolute Return Tracker fund is a diversified, multi-strategy portfolio that invests long/short across equities, bonds, currencies, credit, and commodities. It offers daily liquidity with full transparency of positions. The aim is to replicate the performance of an aggregate of the hedge fund industry - based on the performance of 3,000 hedge funds.

The alternatives allocation is around 7% for the four risk profiles from Cirilium Conservative Passive to Cirilium Dynamic Passive but the asset class is not held in the Cirilium Adventurous Passive Portfolio, which is invested solely in equities.

More flexibility for fixed income

In addition, to help the Cirilium Passive Portfolios target better returns for their degree of risk, the following fixed income funds have been added to the portfolios:

• Vanguard Global Corporate Bond Index Fund
• Vanguard UK Investment Grade Bond Index Fund
• Amundi JP Morgan GBI Global Government ETF
• Amundi UK Government Bond ETF

Previously a single broad fixed income index was used, but by breaking the fixed income allocation down into four component parts, it allows the portfolios more freedom to vary the weighting between these sub-asset classes to target the best risk and return opportunities as identified by the strategic asset allocation.

Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The value of investments may go down as well as up and investors may not get back the amount originally invested.
There are also other risks shown below of which investors should be aware. For more information on these risks, investors should read the key investor information document(s) (KIID(s)).

The portfolios are denominated in one currency, but may hold assets denominated in other currencies, which means exchange rate changes may cause the value of investments to rise or fall. The portfolios may invest in a range of assets such as bonds, equities (company shares), and other investment funds.

This means the portfolios will be subject to the collective risks of those investments and, in the case of other investment funds, the collective risks of those investment funds as well as their underlying investments. The portfolios deduct the charges from the capital of the portfolios, which means there is the potential for capital erosion if insufficient capital growth achieved to cover the charges. The portfolios may use derivatives, which means there may be a higher level of risk. The portfolios may invest more than 15% in cash, which could reduce returns in rising markets and reduce losses in falling markets. The portfolios may hold investments that may be more difficult to sell, which may affect the ability of investors to withdraw their money. The portfolios invest in emerging markets, which may be more volatile than investments in developed markets.

This communication is issued by Quilter Investors, a trading name of Quilter Investors Limited. Quilter Investors is registered in England and Wales under number 04227837 and is authorised and regulated by the Financial Conduct Authority (FCA) under number 208543. Registered office: Senator House, 85 Queen Victoria Street, London, United Kingdom, EC4V 4AB.

Quilter Investors Cirilium Conservative Passive Portfolio, Quilter Investors Cirilium Balanced Passive Portfolio, Quilter Investors Cirilium Moderate Passive Portfolio, Quilter Investors Cirilium Dynamic Passive Portfolio, and Quilter Investors Cirilium Adventurous Passive Portfolio are sub-funds of Quilter Investors Cirilium OEIC, an investment company with variable capital incorporated in England and Wales.

Quilter Investors Cirilium OEIC is authorised by the Financial Conduct Authority as a non-UCITS retail scheme and can be distributed to the public in the United Kingdom.

Quilter Investors uses all reasonable skill and care in compiling the information in this communication and in ensuring its accuracy, but no assurances or warranties are given. Investors should not rely on the information in this communication when making investment decisions. Nothing in this communication constitutes advice or a personal recommendation. This communication is for information purposes only and is not an offer or solicitation to buy or sell any Quilter Investors portfolio. Investors should read the KIID before investing in any sub-fund of Quilter Investors Cirilium OEIC. The KIIDs and the prospectus can be obtained from www.quilter.com in English.

Data from third parties is included in this communication and those third parties do not accept any liability for errors and omissions. Investors should read the important information provided by the third parties, which can be found atwww.quilter.com/third-party-data. Where this communication contains data from third parties, Quilter Investors cannot guarantee the accuracy, reliability or completeness of the third-party data and accepts no responsibility or liability whatsoever in respect of such data.