Copia Capital Management, the discretionary fund manager of Novia group, has launched a pair of smart beta portfolios aimed at the UK adviser market.
Bill Vasilieff, CEO at Novia Financial.
Teaming up with US exchange-traded fund provider First Trust and technical analysis strategists Dorsey, Wright & Associates (DWA), the two portfolios are the Copia First Trust Smart Beta portfolio and the Copia Dorsey Wright Smart Beta portfolio.
The Copia First Trust portfolio is made up of First Trust Advisor’s AlphaDEX ETFs, while the Copia DWA portfolio uses First Trust AlphaDEX ETFs, but will use other trackers when First Trust funds are not available.
The latter portfolio also uses an overlay of DWA technical analysis. It is fully invested in equity ETFs and evaluated for realignment at the end of each month with the top four funds being equally weighted at all re-alignments.
The smart beta ETFs use AlphaDEX index methodology, which selects and weights stocks based on investment merit, as opposed to size. The aim of the fundamental index is to identify stocks within a traditional broad-based index which exhibit the fundamental characteristics likely to provide the greatest potential for capital appreciation.
Bill Vasilieff, CEO at Novia Financial told ETF Strategy: “There are cleverer ways of investing than just straight market cap, and we are offering these in a rules-based investment strategy, which takes all the emotion out of investment decisions.”
He added in a statement: “We are keen to build on the success of the existing Copia model range and the addition of these new models is recognition of the performance that smart beta can generate.”
Eric Anderson, Senior Vice President at First Trust said: “We are very excited to be partnering with Novia here in the UK to make our strategies available to UK investors.”
Jay Gragnani, Vice President Dorsey, Wright & Associates, added: “Entering the UK market in this capacity is a new frontier for us, and we are very fortunate to be working with Copia to bring these strategies to the Financial Advisory community in the UK.”
The two new portfolios are both risk rated ten – i.e. for the adventurous investor – with the following fee structure:
Copia First Trust Smart Beta – Copia fee (0.30% +VAT) + First Trust TER (0.50%)
Copia Dorsey Wright Smart Beta – Copia fee (0.55% +VAT) + First Trust TER (0.55%)
The portfolios are available exclusively on the Novia Platform from 14th March.