AJ Bell has launched an active management version of its Managed Portfolio Service specially designed for financial advisers to use.
The new portfolios, which are only available on the AJ Bell Investcentre platform, give mirror AJ Bell’s existing passive MPS but with the new portfolios implemented via a choice of actively managed funds, the comply said in a statement announcing the launch.
The vast majority of underlying investments will be active funds, AJ Bell said but it will only select active funds when it is “confident the fund manager can deliver performance worth paying for”, allowing the flexibility to use passive investments where it believes that is the right option.
Kevin Doran, pictured left, chief investment officer and MD of AJ Bell Investments, that the launch was due to adviser demand following the company’s passive MPS becoming “increasingly popular” with advisers, particularly following the price cut that the company implemented earlier this month.
“Many of these advisers we work with have asked if we can add an active management option and so, thanks to our commitment to offer investors choice, we are delighted to be able to do that to meet this demand,” said Doran.
“Advisers will now have access to managed portfolios matched to six risk levels, with an active and passive option in each level.”
New active range
The new active range will contain six portfolios which are benchmarked against risk profiles 3 – 8 in Distribution Technology’s Dynamic Planner risk ratings.
All the portfolios will have an annual management charge of 0.15% + VAT, in line with the recent price cut AJ Bell announced on its passive MPS. The OCFs of the underlying funds at launch range from 0.39% for risk level 3 to 0.84% for risk level 8.
This gives a total cost for the portfolios ranging from 0.57% to 1.02%.
Each portfolio will contain around 15 underlying active funds and are available for advisers to use now, AJ Bell said.