Introducing the MGTS Parmenion Diversified Alternatives Fund

This week, Parmenion Investment Management launched its first fund in partnership with authorised corporate director, Margetts.

MGTS Parmenion Diversified Alternatives unlocks access to a range of investments that are usually difficult to access on platforms, including gold, infrastructure, private assets and more.

Shortly after launch, it will replace the funds held in the diversified alternatives asset class of most Parmenion Investment Management's solutions. It will also be available for Advisory Models PRO users and other DFMs on Parmenion and select third party platforms.

Why diversified alternatives?

You can’t rely on the old rules of negative correlation

Bonds have historically been the go-to diversifier, usually increasing in value when equities suffer, but that’s no longer always the case. To futureproof our portfolios, we introduced the diversified alternatives asset class to our MPS range in 2022.

Proven diversification benefits

The asset class has typically increased in value when equities and bonds both fall - usually in periods of great inflationary pressure. Recent examples include Trump’s tariffs and the ongoing Iran war. With global uncertainty unlikely to fade, we wanted to go further.

Key benefits of the fund

• Better diversification – investing within a fund structure provides access to a wider range of alternative investments, offering the potential for improved diversification.
• Cost neutral – for solutions using our current diversified alternatives blend, the fund OCF will broadly be cost neutral with funds it’s replacing. Our fee for managing the fund comes out of the OCF.
• Actively managed – our experienced Investment Team will actively manage the fund, aiming to seek out investment opportunities and navigate risks.
• Access a wide range of alternative investments – many existing strategies have a narrow focus on property or commodities, limiting the full power alternatives can deliver.
• Simpler to explain – holding the varied and sometimes complex investments within this asset class in a single fund makes it easier to explain to clients and removes the need for a long list of small holdings.

Shortly after the fund launch, we’ll start replacing the funds held in the diversified alternatives asset class with this new fund in the following solutions:

• Passive Growth
• Blended Growth
• Active Growth
• Multi Option Growth
• Income

This includes co-branded versions of the solutions. Our ESG Growth solutions won’t be affected.

We’ll also be adding the fund to our Passive Growth (Risk Managed) and Active Growth (Risk Managed) solutions which don’t have any diversified alternatives exposure at the moment. 

If you’d like to know more, you can read our FAQs or get in touch.

This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity. Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.