The new MPS has exposure to the iShares Global High Yield Corp Bond ETF, BlackRock UK Equity Tracker Fund and Vanguard UK Long Duration Gilt Index, among others. It has an annual management charge of 0.25% + VAT.
The portfolios are constructed using passive funds to keep costs low, giving an ongoing charge figure for the constituents of each portfolio ranging from 0.18% to 0.22%, which means the total cost is between 0.48% and 0.52%.
There are five portfolios that target specific levels of risk, and each of them have been mapped using risk profiling tools from Distribution Technology and Finametrica. They are diversified across asset classes and regions and will be rebalanced quarterly to ensure they remain aligned with their risk targets, according to AJ Bell.
The offering will be run by AJ Bell Investments, a new investment management business that was created earlier this year.
“Advisers’ use of portfolio services has been on the increase since the RDR but the costs and transparency of traditional services have not kept pace with the direction of travel in the market,” said Billy Mackay, marketing director at AJ Bell. “Our focus has been to build a managed portfolio service that is easy to understand for both advisers and their clients, fits into the existing business processes of advisers and offers their clients a competitive deal,” he added.