UK wealth manager Brewin Dolphin is launching a new passive portfolio range for IFAs, called MPS Passive Plus, to add to its managed portfolio service (MPS).
The MPS Passive Plus range encompasses five core risk-rated models: cautious, income, balanced, growth and global equity.
The asset allocation is set by Brewin Dolphin’s asset allocation committee and the underlying funds are selected by the group’s MPS investment committee.
The five models are re-balanced monthly to ensure the asset allocations are updated to reflect key developments in the investment markets.
The ‘Plus’ element of the product refers to the fact that the team can allocate to active funds where they believe it would benefit the portfolio and passive funds might not offer effective replication e.g. in absolute return. Passive fund usage will vary over time, and by the five portfolios, but it is currently between 79 per cent and 100 per cent.
With the launch of its MPS Passive Plus service, Brewin Dolphin harnesses the benefits of passive investing, which is increasingly seen as an attractive, cost-effective and streamlined way for IFAs to manage their clients’ investment needs. The underlying TERs for the passive portfolio are between 0.12 per cent and 0.30 per cent.
The MPS Balanced Portfolio has a one year performance of 14.9 per cent, three year performance of 28.5 per cent and five year performance of 69 per cent.
The cost advantages of MPS Passive Plus will be translated to the end-investor in terms of a lower overall fee structure levied at 0.2 per cent plus VAT for Brewin Dolphin’s management charge. Both MPS and MPS Passive Plus have a low minimum investment of GBP2,000 across all platforms.
IFAs can now choose between Brewin Dolphin’s MPS Passive Plus, MPS and the full IFA bespoke discretionary service, dependent on the specific needs of their client.
Gareth Johnson, head of Brewin Dolphin’s managed investment services, says: “The launch of Brewin Dolphin’s MPS Passive Plus range is good news for IFAs, as it will mean they can make another investment option accessible to a wider range of people. MPS Passive Plus will enable IFAs to choose the best possible investment strategy to fit with their clients’ expectations and investment needs.
“Brewin Dolphin’s new MPS Passive Plus range gives IFAs the best of both worlds with us actively reviewing asset allocation but using underlying cheaper passive funds to get the relevant market exposure. We’ve also ensured that as they launched, the major third party risk ratings are available from inception to further assist advisers.”
Brewin Dolphin employs 17 regional based business development managers to specifically service the IFA market.
Brewin Dolphin’s Managed Portfolio Service and MPS Passive Plus is available on Aegon, Ascentric, Aviva, Fusion James Hay, Novia, Nucleus, Standard Life, Transact and Zurich.
In addition, performance figures are available via Defaqto Engage, FE DFM Transmission and Asset Risk Consultants (ARC).
IFAs can use Distribution Technology, eValue, Finametrica and Synaptic for risk profiling.