Wealth manager and ETF specialist SCM Private has marked its two year anniversary with the launch of the SCM Private Bond Reserve Portfolio and fee reductions that continue its philosophy of putting investors first.
The SCM Private Bond Reserve Portfolio will invest primarily in cash, corporate bonds and emerging market debt, through ETFs, and offer investors a number of advantages over traditional bond funds, including low annual management fees of just 0.3%+ VAT through an IFA, and 0.5% + VAT for direct clients, as well as a solid yield potential with the underlying average flat yield of the bonds currently 4.9% pa before all costs.
The SCM Private Bond Reserve Portfolio will employ strong investor safeguards, with not more than 25% of the Portfolio invested in any single ETF; no investment in short or leveraged ETFs; no investment in ETFs with less than 100% collateral; not more than 50% in foreign currency ETFs; and all ETFs being London Stock Exchange listed.
The Portfolio is invested in a wide spread of indexes, which back testing has shown significantly reduces portfolio volatility, as well as 659 corporate and government bonds versus an average IMA bond fund which holds just 183 bonds. Clients will also see 100% of their investments online, with values updated daily, while SCM’s founding partners have committed a seven figure sum to the new portfolio.
Alan Miller (pictured), founder and CIO of SCM Private, says: “The launch of this new bond portfolio is in direct response to a growing appetite from clients, investors and IFAs. With interest rates set to continue at low levels, many investors are seeking a low risk, low volatility investment, with the objective of outperforming cash.“
