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

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

Why you should care about the German elections

Why you should care about the German elections...

You may be forgiven for not staying up late this Sunday to watch the final results of Germany’s parliamentary elections come in. While chancellor Merkel is sure to win, the scale of her victory is likely...

Analysis

Profiles

Directories

Canada Life International Limited
Canada Life International...

Canada Life International Canada Life House,...

Tweets

Events

IA International Portfolio Bond Forum Glasgow 2017
IA International Portfolio Bond Forum Glasgow 2017

Thursday 16 November
The Grand Central Hotel, Glasgow

IA Future Advisory Forum Dubai 2017
IA Future Advisory Forum Dubai 2017

Wednesday 22 November
The Shangri-la Hotel, Dubai

IA Best Practice Adviser Awards Middle East 2017
IA Best Practice Adviser Awards Middle East 2017

Wednesday 22 November
The Shangri-La Hotel, Dubai

Sponsored Content

Investment Strategy

OTHER STORIES FROM LAST WORD...