In the back
services that have popped up are
inherently flawed as all they can do is
guide people, not advise them.
A way out
There are a couple of ways around
this guidance-versus-advice issue
that the platforms have employed.
1. Select a recommended list of
funds for a set of criteria, risk-
and time-based, picked by
experts and regularly reviewed.
However, this portfolio is not
managed for you on an ongoing
basis, so it is up to you to follow
the changes the platform makes
to these holdings or keep them as
it is. These portfolios represent a
great starting point, but you need
to rebalance them yourself.
2. Some platforms use multi-
manager funds. These are
effectively the same as the first
option, but there is an official
fund that comprises other funds
to form the portfolio. As these
are funds, they have one set of
charges and are run by a manager
who does all the rebalancing for
you. This avoids the problems
of providing personal advice
associated with the first option,
but these solutions tend to be
more expensive.
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[ PLATFORMS & PENSIONS ]
54 / 55
As you cannot offer
personal advice unless you
are an adviser, the services
that have popped up are
inherently flawed as all
they can do is guide people,
not advise them
Different strokes
All six major platforms in my review
have similar offerings but have
different roots. Charles Stanley
Direct and Tilney-owned Bestinvest
have strong advisory-led parentage
with the in-house skills to offer
strong model-portfolio methodology.
Hargreaves Lansdown sits between
both camps, with a recent advisory
heritage and research expertise,
while AJ Bell, The Share Centre and
interactive investor are execution-
only administrators and brokers.
That’s not to say these firms
haven’t invested in the people and
skills to create a strong investment
philosophy for their services, so
all the platforms over the page are
credible suppliers of model portfolio
and multi-manager services.
Platform by platform, here’s what I
found to be the good, bad and ugly of
their service offerings.
ASSESSMENT
CRITERIA
Ease of use and transparency
of investment process
Helpful guidance to suggest
the correct portfolio for your
needs
A strong process, range of
investments and selection
rationale
Portfolio performance
Charges
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