ARIA launches FATCA-friendly portfolio strategy
The ARIA Investment Platform has launched a range of portfolio strategies on its investment platform aimed at US Investors caught by increasingly tough legislation.
The Cautious Income Balanced and Adventurous Strategies are advised by Parala Capital, based on its Parala Macro Multi-Asset Allocation strategies, and are available on the ARIA Investment Platform.
Parala was founded by econometric forecasting and predictability of markets experts Professor Allan Timmermann and Professor Russ Wermers, who have both previously consulted for the European Central Bank.
ARIA said it has launched the strategies in response to “significant demand” amongst the UK and international adviser community for a home for the savings of US Nationals working abroad.
Removing hurdles
The strategy aims to “remove [the] investment hurdles” created by investment vehicles and services which exclude investment by US persons as a result of regulation, and provide clients with a risk rated solution.
One particular piece of legislation that has caused problems for US investors is the Foreign Account Tax Compliance Act (FATCA), which in July introduced requirements for foreign financial institutions to disclose all US related information about new and existing clients to the US Internal Revenue Service (IRS), or risk facing a 30% witholding tax.
ARIA’s strategy looks to form a portfolio consisting of US investments in order to alleviate the reporting requirements associated with FATCA.
Head of strategic partnerships, James Tothill, said: “Most fund managers say they do not want US nationals, and strategies such as this are overcoming that.”
The cost of the strategy is 1% exclusive of any platform custody fees, and it includes three risk graded strategies to cover the varying investment risk profiles of clients.
The strategies are available via the ARIA Investment Platform, which also offers a full wrap service platform for UK and international intermediaries.
Portfolio manager for Parala, Steven Goldin, said: “It has long been accepted that asset allocation is a major determinant of investor returns, and the Parala proposition process focuses solely on this area.
“Parala brings a new level of expertise and advanced econometric modelling capability, previously only available to the institutional clients, to help investors navigate challenging markets and changes in asset class returns and risk premia across economic cycles.”
ARIA Capital Management is a fully integrated company offering a full service wrap platform, wealth management, investment management, stockbroking and structured investments. It has offices in the UK, London, and Dubai.
Earlier this month, ARIA launched the ARIA Investment Platform SIPP, a low-cost eSIPP backed by Liberty Pensions.
