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AJ Bell launches active mirror to passive portfolios

21 February 2018

AJ Bell has launched a range of six active portfolios, mirroring its current passive managed portfolio service.

The range, which is available via the AJ Bell Investcentre platform, will offer advisers greater flexibility to meet differing client needs, the firm said.

Although the vast majority of underlying investments will be active funds, AJ Bell will only select active funds when it is confident the fund manager “can deliver performance worth paying for,” and will use passive investments where it believes that it is the better option.

The new active range will be benchmarked against risk profiles 3-8 in Distribution Technology’s Dynamic planner risk ratings. Each portfolio will contain around 15 underlying active funds and are available for immediate use.

Kevin Doran, chief investment officer and managing director of AJ Bell Investments, said: “Our passive MPS is becoming increasingly popular with advisers, particularly following the price cut we implemented earlier this month.  Many of these advisers we work with have asked if we can add an active management option and so, thanks to our commitment to offer investors choice, we are delighted to be able to do that to meet this demand.

“Advisers will now have access to managed portfolios matched to six risk levels, with an active and passive option in each level.  This will enable them to meet the vast majority of their clients’ risk profiles, investment preferences, all at a market leading price point.”

All the portfolios will have an annual management charge of 0.15% + VAT in line with the recent price cut across its passive managed portfolio service.

Professional Paraplanner