AJ Bell launches low cost managed portfolio service

Added 15th August 2016

Investment platform AJ Bell has launched a new managed portfolio service (MPS) with an annual management charge of 0.25% + VAT.

AJ Bell launches low cost managed portfolio service

The MPS is aligned with the existing risk profiling tools used by advisers, enabling them to offer their clients a risk-targeted investment solution while helping to reduce the regulatory burden attached to portfolio management.

The portfolios

There are five portfolios that target specific levels of risk, each of which have been mapped to the risk profiling tools from Distribution Technology and Finametrica so advisers can more easily incorporate them into their existing advice processes.

The portfolios will be run by AJ Bell Investments. They are broadly diversified across asset classes and regions and will be rebalanced quarterly to ensure they remain aligned with their risk targets.

The costs

There is an annual investment management charge for the MPS of 0.25% plus VAT. The portfolios are constructed from passive funds to keep total costs low, giving an ongoing charge figure for the constituents of each portfolio ranging from 0.18% to 0.22%. 

This means the total cost for the complete investment solution is between 0.48% and 0.52%.

Adviser benefits

According to AJ Bell, the MPS makes it easy for advisers to offer their clients a comprehensive portfolio service without having to manage it themselves, leaving them free to focus on their core financial planning advice. It also helps them meet their regulatory obligation of ensuring the portfolios meet the needs of their clients.

Billy Mackay, marketing director at AJ Bell, said: “Advisers’ use of portfolio services has been on the increase since the RDR but the costs and transparency of traditional services have not kept pace with the direction of travel in the market. 

“Our focus has been to build a managed portfolio service that is easy to understand for both advisers and their clients, fits into the existing business processes of advisers and offers their clients a competitive deal.”

Portfolio asset allocations

From lowest risk (Portfolio 1) to highest risk (Portfolio 5), the asset allocation is as follows:

 

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

Total Cost of Investment

You state - "This means the total cost for the complete investment solution is between 0.48% and 0.52%" but i assume this investment solution is only available on the AJ Bell platform for which i assume there is a further charge - should this not be added to give a more realistic cost?

Posted by: Conor C, 15 Aug 2016

About Author

Kirsten Hastings

Senior Reporter

Kirsten is a senior reporter for International Adviser, covering global news stories about the financial services industry. She joined Last Word Media in October 2015 after two years working as a reporter covering the staffing and recruitment industry. Kirsten has a Masters in Financial Journalism from the University of Stirling. 

Features

US equities: If you can’t beat them, join them

US equities: If you can’t beat them, join them...

European investors have been dismissing US equities as too expensive for a couple of years. But as the S&P 500 continues to outperform other equity markets, appetite for the asset class is again on the...

Directories

Ashburton International
Ashburton International

Ashburton Investments is a new generation investment...

Tweets

Events

Future Advisory Forum Hong Kong 2016
Future Advisory Forum Hong Kong 2016

Tuesday 4th October 2016

Hong Kong

Future Advisory Forum Singapore 2016
Future Advisory Forum Singapore 2016

Thursday 6th October 2016

Singapore

Offshore Bond Workshop Manchester 2016
Offshore Bond Workshop Manchester 2016

12th October 2016
The Midland, Manchester

Future Advisory Forum Cape Town 2016
Future Advisory Forum Cape Town 2016

Tuesday 18th October
The Vineyard, Cape Town

Investment Strategy

Sponsored Content

OTHER STORIES FROM LAST WORD...