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AJ Bell launches model portfolio service for advisers

AJ Bell has launched a model portfolio range managed by its new investment business.

The range, which is risk-targeted and made of passive funds, is diversified across asset classes and regions and will be rebalanced quarterly.


Money Marketing sister publication Fund Strategy first revealed the planned launch in November, when chief executive Andy Bell said the firm was looking to create a low-cost solution for advisers.

In January, AJ Bell acquired a London-based investment management business in order to launch its own range of funds.

However, the firm recently said it had no plans of getting into full active management as this is not its area of expertise.

AJ Bell also revealed the asset allocation of the new range as well as an example of the holdings breakdown.

The range will include exposure to fixed income, UK equity, overseas equity, alternatives and cash.

The lowest risk option, Portfolio 1, includes 60 per cent in fixed income, 6 per cent in UK equity, 14 per cent in overseas equity, 5 per cent in alternatives and 15 per cent in cash.

In contrast the highest risk Portfolio 5 has its highest exposure in overseas equity (48 per cent), followed by 20 per cent in fixed income, 15 per cent in alternatives, 12 per cent in UK equity and 5 per cent in cash.

In a medium-risk portfolio the passive holdings with the highest weights include the Vanguard UK Long Duration Gilt Index, SPDR Barclays Sterling Corporate Bond Ucits ETF, iShares Core £ Corporate Bond Ucits ETF.

AJ Bell marketing director Billy Mackay says: “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.”

Overall annual management fee for the range is 0.25 per cent while ongoing charge figure for each fund ranges from 0.18 per cent to 0.22 per cent.



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  1. Watch out for the fx charges they are outrageous
    In out in out – Hokey Cokey

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