FundsNetwork is adding five fund of fund portfolios to its platform to help advisers deal with the regulatory changes expected from the retail distribution review.
The PortfolioManager funds range from a defensive strategy, which contains only 10 per cent in equities, 5 per cent in property and 85 per cent in UK bonds, through cautious, balanced, adventurous and aggressive styles.
The aggressive portfolio is 100 per cent invested in equities, with 10 per cent in the UK, 70 per cent in developed markets and 20 per cent in emerging markets.
The funds, launched this week, will be run by Fidelity’s multi-manager team led by Simon Ellis. All the portfolios can be used with the full range of tax wrappers and FundsNetwork’s other tools.
Two share classes will be issued – one for commission and one for fee-paying clients, allowing IFAs to offer the same service to different segments of their client bank.
Head of sales and marketing Rob Fisher says the total expense ratio will depend on the risk/reward variations, from 1.45 per cent at the lowest end with no commission up to 2.25 per cent including commission.
The portfolios will invest in FundsNetwork’s range of 1,100 funds, as well as providing access to more specialist investment houses such as Goldman Sachs.
Fisher says: “We hope this will give maximum flexibility, allowing advisers to use just one vehicle regardless of the segmentation of their client bank, whether they take commission or fees. All the portfolios are offered on the platform and you get the full risk/reward, depending on the client’s attitude.”