AJ Bell to launch model portfolio service

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AJ Bell plans to launch a model portfolio service in 2016.

Chief executive Andy Bell says the firm will ultimately use the model portfolio service to develop its own range of funds.

“It will be a low-cost passive service with some active overlay,” Bell says.

“Our aim is to offer a service that is fully integrated with the platform so it will be easy for advisers to use and based around passive investments so it will be highly attractive from a cost perspective.”

Bell says the platform is not looking to develop direct client relationships and will not be offering active management.