Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

AJ Bell unveils 'pactive' model portfolios

1 Comment
AJ Bell unveils 'pactive' model portfolios

AJ Bell has added six new ‘Pactive’ portfolios to its managed portfolio service (MPS), combining its active and passive funds.

Given the 'Pactive' portmanteau by the firm, the portfolios are invested half in the firm’s current eight actively managed portfolios and half in its passive vehicles.

They are targeted to the same six risk levels AJ Bell’s other 12 non-income managed portfolios, and are intended to allow advisers’ clients to benefit from the lower costs of the passive funds while retaining exposure to the ‘potential investment outperformance’ of the active funds.

Fees for the new products vary according to risk level as shown below:

 Pactive MPS MPS 1 MPS 2 MPS 3 MPS 4 MPS 5 MPS 6
AJ Bell AMC 0.18% 0.18% 0.18% 0.18% 0.18% 0.18%
Underlying OCF 0.37% 0.44% 0.49% 0.51% 0.54% 0.58%
Platform fee 0.20% 0.20% 0.20% 0.20% 0.20% 0.20%
Total 0.75% 0.82% 0.87% 0.89% 0.92% 0.96%

The launch comes after AJ bell last week cut annual charges on its six passive funds to 0.35%.

The company's chief investment officer Kevin Doran said: ‘Growing numbers of financial advisers are choosing to use managed portfolio services and the launch of our Pactive portfolios gives them greater choice and flexibility to meet a wider range of client needs. 

‘Some will want exclusively active management and some will be fans of the passive approach but in the middle are those that want an element of active exposure with the cost control that passive investments can deliver.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: how Brighton Capital joined Brewin and UBS alumni

Profile: how Brighton Capital joined Brewin and UBS alumni

‘I’m a mini business inside a mini business,’ says Sylvia Bowen, describing her new role at boutique Brighton Capital Management.

Wealth Manager on Twitter