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£1 model portfolio service launched by Invesco’s Intelliflo

Back office provider Intelliflo has launched an integrated model portfolio system that will see investment manager parent Invesco charge advisers £1 per client.

This follows Invesco’s acquisition of Intelliflo last year which left it with a development budget of £3.7m to upgrade and extend its services.

The £1 per client per month charge will be capped at £70 a month.

The model portfolio system, which was announced this morning at Intelliflo’s Change The Game conference, will be open to any third party provider.

Invesco head of UK retail distribution Christopher Lyes says the firm’s size makes it able to shoulder the low cost.

Invesco seals merger with OppenheimerFunds to break $1trn mark

He says: “Our scale as one of the largest asset managers in the world means we can bring this robust investment proposition to the UK financial adviser market at a leading price.

“Bringing Invesco’s investment depth and expertise onto the cutting-edge technology of Intelliflo we can deliver improved choice, investment outcomes and values to advisers and to their clients.”

Underlying asset charges are not included in the price, while Invesco’s £1 charge is also exclusive of value added tax.

Speaking to Money Marketing, Intelliflo founder and executive chair Nick Eatock says the service will provide a way for advisers to use advisory models efficiently and will be focused around multi-asset solutions.

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He says: “We surveyed advisers about the most difficult parts of the investment process earlier this year and found there was a common theme largely woven around actually getting clients to accept a recommendation and that was whether it was a new one or just rebalancing.

“Third party model portfolio providers can provide models that are personalised to advisers’ clients and can also align clients to their model. It is an immediate and transparent process that means the client has a clear audit trail of proceedings and recommendations.”

Invesco will be first to go live with the model portfolio system, while Fidelity Funds Network is the first platform in use. Eatock says Intelliflo is also in discussion with several other third-party providers including Seven Investment Management.

Financial Technology Research Centre director Ian McKenna says the introduction of the model portfolio service will place further pressure on the discretionary fund management sector.

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He says: “With model portfolios being available for as little as £1 per client per month this could have a dramatic impact on the price of advised and discretionary propositions.

“Advisers will be able to choose model portfolios in the model marketplace, compare them with their client’s portfolio and if there is a case for rebalancing, link electronically to platforms to carry out the rebalance.

“The announcements made today by Intelliflo throw down a huge challenge to the rest of the adviser software community, platforms and asset managers.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Well this must be funded [cross subsided] from other parts of the business or they are fast tracking bankruptcy

    Either way hardly sustainable, and IMHO, quite irresponsible……

    Who would buy a nice new house then burn it to the ground ?

  2. Christopher Petrie 18th June 2019 at 1:48 pm

    Mifid will increase price pressures on investments and, in my opinion, DFMs will feel the heat the most.
    1% or so, on top of asset changes. Platform fees and advisor changes can add up to more than 3.5% in some cases.
    I don’t think that will be sustainable in the long term, as Mifid shines a bright light on investment industry charges.

  3. I am sure when Invesco bought Intelliflo this was the long term game!

  4. Plenty of providers and fund managers have tried to get closer alignment with CRM systems- rarely successfully- but if they can offer compétiteurs portfolios that are fully integrated and other managers are welcome to do the same then why wouldn’t this be a good thing- anything that drives competition in an old-fashioned market allowed to fester for so long hidden behind opaque charging structures (fund management in general by the way) can only be a good thing- so good on them!

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