Investec Wealth & Investment (IW&I) has made its managed portfolio service (MPS) for IFAs available on a wider range of platforms and cut the annual management charge (AMC) to 0.2%.
The five risk-based portfolios are now available on the Ascentric, Aviva, Embark, Hubwise, Novia, Nucleus, Standard Life and Transact platforms.
Before, they were only available on Standard Life’s service.
Charges
IW&I said the reduced AMC of 0.2%, with a capped OCF of 0.6%, makes the service one of the most competitively priced MPS solutions on the market. The service previously had an AMC of 0.3%.
Price competition among discretionary fund managers for model portfolios has been heating up lately, with portfolios from Tatton Asset Management and AJ Bell having the lowest AMC of 0.15%.
In February, Sparrows Capital unveiled an MPS priced at 0.1% per annum with a cap of £20 ($25.52, €21.91) per underlying client per month. The service follows an evidence-based approach to investing which is passive in nature.
Last summer, Invesco revealed its MPS service, headed by former head of fund research Ben Gutteridge, which has a charging structure of £1 per client per month, plus VAT, capped at £70 per month per advice firm.
Attractive
IW&I said the MPS is actively managed with research specialists continuously reviewing the portfolios to enable tactical asset allocation and fund changes when necessary.
“Each strategy is built from a research list that far exceeds those of their peers to ensure a range of highly diversified strategies,” the firm said in a statement.
There is no cap on the investment amount into the service.
IW&I head of intermediary services John Cowmeadow said the price was adjusted after conversations with IFAs in the market.
He said: “We hope this new service will be attractive not only to our existing IFA partners, but to intermediary firms and their clients that haven’t worked with Investec before – especially those clients who may be at an early stage of building their wealth.”
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