AJ Bell launches ‘Pactive’ Managed Portfolio Service for advisers

18 February 2019

AJ Bell today launches a new ‘Pactive’ version of its popular Managed Portfolio Service (MPS) which blends its actively managed portfolios with its passive funds to offer financial advisers greater choice when advising their clients.

AJ Bell’s MPS currently gives advisers sixteen portfolios that are broadly diversified across asset classes and regions.  The portfolios are targeted to meet six different risk levels and are mapped to all the main risk profiling tools used by advisers, with an active and passive option for each of the six risk levels.  There are also four income portfolios, two active and two passive. All portfolios are automatically rebalanced quarterly to ensure they remain aligned with their objectives.

The new Pactive portfolios are aligned to the same six risk levels as the existing portfolios and are invested half in the current actively managed portfolios and half in AJ Bell’s Passive funds.

This enables financial advisers to offer clients an option which benefits from the potential investment outperformance of the active funds selected by AJ Bell whilst keeping costs under control by using its passive funds.  Last week AJ Bell slashed the Ongoing Charges Figure (OCF) on its passive funds to 0.35%.

AJ Bell’s annual management charge for the MPS is just 0.15% + VAT, making it one of the cheapest in the market.  The underlying fund costs for the Pactive portfolios will range from 0.37% to 0.58% giving a total portfolio cost of 0.75% to 0.96%. A full cost breakdown of the entire MPS – including the cost of AJ Bell’s platform of just 0.20% - is below.

The AJ Bell MPS makes it easy for advisers to offer their clients a comprehensive portfolio service without having to manage it themselves, leaving them free to focus on their core financial planning advice. It also helps them meet their regulatory obligation of ensuring the portfolios are managed in line with the risk profile they agree with their clients.

Kevin Doran, chief investment officer at AJ Bell, comments:

“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.  It’s our view that advisers know their customers better than anyone else and so our MPS is designed to give advisers the options they need to meet their requirements.”

The value of investments can go down as well as up and a client may not get back their original investment.

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