Old Mutual Wealth’s WealthSelect Model Portfolio Service has surpassed GBP1 billion in assets under management, of which GBP450m has been directed towards pension accounts.
The milestone comes shortly after the service celebrated the one year anniversary of its February 2014 launch, demonstrating positive performance during that period.
To date, 75 per cent of all investments in the Model Portfolio Service have been directed toward portfolios of actively managed funds while the remaining 25 per cent has been invested in passive blend portfolios that incorporate some low-cost index funds.
The most popular portfolios reflect the preference most customers have for a blend of growth and risk control. As a result 75 per cent of assets invested in the portfolios have been directed in to portfolios 4, 5 or 6, the middle of the risk scale.
Investments are held in a range of different tax wrappers: Collective retirement accounts; ISAs; Collective investment bonds; and ‘unwrapped’ collective investment accounts.
Pension investors have committed the most money to the WealthSelect Model Portfolio service. Almost half of all investments have come from customers putting money aside for their retirement, with GBP450m invested in portfolios held within an Old Mutual Wealth CRA.
Old Mutual Wealth head of UK distribution Scott Goodsir, says: “We are delighted WealthSelect Model Portfolio Service has reached this milestone after just over a year, making it one of the most successful launches in recent years.
“The combination of award winning fund managers from widely respected asset management houses, being harnessed by award winning portfolio managers has been attractive to a great many advice firms who have been draw toward the quality of the investment management at a market leading price.
“When designing the WealthSelect Model Portfolio Service we spent a lot of time researching and understanding what advisers and their clients wanted from an investment solution. What has been pleasing is that different advisors have felt it to be suitable for different parts of their respective client banks. There have been many positive comments about the service, particularly regarding the white labelled quarterly reports. We recognise the value of advice and the role that advisers play in delivering great outcomes for customers and as such we will continue to develop services and tools that allow advisers to enhance the service they provide to their clients.
“The GBP1 billion milestone has been reached well ahead of expectations and we continue to attract new flows rapidly.”