In the back
INVESTMENT PLATFORM MODEL PORTFOLIO OFFERINGS
– ADVENTUROUS GROWTH PORTFOLIO (OR EQUIVALENT)
Platform
AJ Bell Youinvest
Bestinvest
Charles Stanley
Direct
Service
Format
Ready-made Initial recommendation,
portfolios
self-managed ongoing
Number
of funds Annual
costs**
7 funds –
all actively
managed UT/
OEICs £228.92
Ready-made Multi-manager portfolio 1 multi-manager
portfolios
– actively managed
fund
Foundation
Portfolios
£286
Initial recommendation,
self-managed ongoing 5 funds – 4
actively
managed UT/
OEICs and 1
index fund £224
£186.10
Hargreaves
Lansdown Master
Portfolios Initial recommendation,
self-managed ongoing 7 funds – 6
actively
managed UT/
OEICs and 1
index fund interactive
investor Model
portfolios Initial recommendation,
self-managed ongoing 5 funds and
3 investment
trusts £407.80
The Share Centre Multi-
manager
funds Multi-manager portfolio
– actively managed One multi-
manager fund £324
Data as at 22/01/2020. *Number of funds in adventurous portfolio. **ii cost based on
investor plan of £9.99 per month. Annual costs are based on a single £20,000 investment
within an ISA in the portfolios indicated
TRUSTNET
[ PLATFORMS & PENSIONS ]
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Although a significant
number of fund managers
offer model portfolios or
multi-manager funds, they
are reluctant to sell them
directly to the public
But how many of these portfolios
actually deliver what they promise?
What is interesting is that although
a significant number of fund
managers offer model portfolios
or multi-manager funds, they are
reluctant to sell them directly to the
public. Instead you have to rummage
around on your platform of choice to
see if you can find the good ones.
Which offering works best?
Lurking on the shelves of most fund First, let’s assess the credentials
supermarkets are what are known as
of the platforms offering these
model portfolios. These baskets of
services. Primarily, a platform is an
funds have been curated by platforms investment administration service,
to aid in the construction of a portfolio not a financial advisory firm. In
to suit different types of investor.
addition, they all claim (certainly
They typically combine two key
for these services) to be execution-
factors – your appetite for risk and
only, so they cannot offer any advice
your time horizon – to create an off-
as defined by the Financial Conduct
the-peg portfolio.
Authority (FCA).
But there are other factors, too: some
This has long been a bugbear of
offer income and growth portfolios;
the retail investment industry. Most
others will start you off with a selection people need to be told what to do, as
of funds, but won’t manage them going they have little confidence in their
forward, leaving you to carry out the
own investment abilities.
rebalancing and fund switches yourself. These model-portfolio products are
Some platforms have pretty
supposed to help people who don’t
sophisticated actively managed
know which funds to pick and want
portfolios, akin to a full discretionary a balanced portfolio that delivers on
managed service, whereas others
their needs.
keep things simple with a small
Unfortunately, as the regulator
selection of goal-orientated funds.
says you cannot offer personal
The concept is to make it as easy
advice unless you are an adviser, the
to invest your money as if you were
being advised by a professional.
trustnet.com