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Charles Stanley has launched a new managed portfolio service aimed at clients with less than £150,000.
The offering, called the Personal Portfolio Service (PPS), has been developed as a high value, cost-effective alternative to the firm’s bespoke discretionary managed portfolios, according to Christopher Aldous, head of asset management at Charles Stanley.
The offering consists of five multi-asset funds that are each designed to target a specific risk profile and targeted level of return. Each fund is actively managed by Charles Stanley’s asset management division, headed by chief investment officer Jon Cunliffe.
The five funds invest in a wide range of asset classes, including both active and passive funds, ETFs, individual bonds and equities.
Clients receive ongoing advice from a dedicated team as to whether the investment remains suitable for them, with annual risk-profiling. As part of the package, they continue to receive a personal service from their investment manager, or from a dedicated team. The proposition has the same access to tax wrappers (SIPPs and ISAs) as with a discretionary portfolio.
By targeting smaller investors, the offering will compete with so-called “robo” investing solutions offered by the likes of Nutmeg, MoneyFarm and Scalable Capital, which provide automated advice and access to ETF-only portfolios. However, unlike the majority of robo – or digital – wealth management solutions, the Charles Stanley offering includes personal, one-to-one advice from the firm’s advisors. It will therefore likely appeal to more mature investors and/or those less convinced by a purely automated solution.
Aldous commented, “In a world of low interest rates, it is more important than ever investors take control of their finances in order to achieve positive returns. We saw a clear gap in the market where we could help smaller clients who might not otherwise be able to afford a professional investment solution together with some advice, and [we] think PPS fills this void.”
The five funds, together with their respective risk profiles and target returns, are outlined below.
The Personal Portfolio Service costs 0.50% per annum and the Ongoing Charge Figure for the multi-asset funds is between 1.25% and 1.34%, making an overall charge for the PPS of between 1.75% and 1.84%. There is currently no minimum investment threshold.