FT Adviser (25/04/2019) – Online wealth manager Netwealth has launched a managed portfolio service which will allow financial advisers to access its investment proposition for the first time.
The service, available through the Transact platform, will give advisers and their clients access to seven risk-return portfolios, with strategic allocations to currencies and passive instruments including ETFs. To help reduce market risk, the MPS will also adopt cyclical positions.
An investment team will monitor portfolio allocation and performance daily, allowing portfolio weights to ‘drift’ with the difference in performance across investment instruments.
Each rebalance will be implemented as soon as a decision is made or a necessary adjustment identified, the company added, to help ensure client portfolios are optimised.
Charges include a discretionary fund management fee of 0.2 per cent plus VAT, and estimated fund costs of 0.24 per cent.
Alan Chan, a chartered financial planner at IFS Wealth & Pensions, added: “For an MPS offering, the fees are quite low and in the right ballpark really for portfolio of index trackers and it’s good to see this being available to IFAs.
“However, I don’t really see us using this as we already use tracker funds that are even lower cost, such as Vanguard Lifestrategy funds, within our portfolios and even for one-off, transactional clients. We prefer a blended solution of active and index funds.”
Full article link: https://www.ftadviser.com/investments/2019/04/25/online-wealth-manager-launches-mps-for-advisers/
