AJ Bell is adding three model portfolio services from rival discretionary fund managers to its platform following demand from its adviser clients.
Advisers using AJ Bell’s Investcentre platform can now access MPS from FE Investments and LGT Vestra while Brewin Dolphin is being added soon.
AJ Bell said it had chosen those three providers first because they were the DFMs most frequently requested by advisers. It said more third-party MPS partners will be added over time in line with this demand.
The third-party MPS will sit alongside AJ Bell’s own MPS and multi-asset funds. They are available via AJ Bell Investcentre’s Retirement Investment Account, Sipp, Isa and general investment account.
When asked by Portfolio Adviser whether offering access to rival DFM providers added competition, an AJ Bell spokesperson said there is an element of competition there but the decision is all about giving advisers choice and enabling them to meet a wider range of client needs.
There is no explicit AJ Bell for the service but clients will pay the standard platform fee for assets held with the external MPS, plus whatever fees the DFM levies.
‘Gives advisers more choice to help service clients’
AJ Bell Investcentre marketing director Bill Mackay said: “Expanding our model portfolio service to include external portfolios alongside our own investment solutions is something advisers have asked us for and we are pleased to be able to offer it.
“Advisers will now be able to utilise the investment expertise of a carefully selected panel of third-party MPS providers, while benefiting from our platform’s competitive charges, excellent service and intuitive functionality.
“It gives them more choice to help service their clients’ needs and we will be adding more MPS partners to expand the service further.”
FE Investments assets break through £3bn mark
Separately, FE Investments announced in a press release on Monday that its MPS assets had grown by nearly 30% so far in 2020, taking overall AUM to more than £3bn.
It said it had “significantly increased” its MPS presence on third-party platforms in recent months, including AJ Bell, but also Elevate and Embark. Its service is now available on 14 platforms.
FE Investments head Rob Gleeson said: “Having faced the first real test of the process after eight consecutive years of rising markets following launch, we’re proud to say we passed with flying colours and the inflows we’ve received this year are reflective of the fact that advisors and investors appreciate a product that delivers on its promises.
“Given the state of the world, we think this strategy is well placed to continue to perform well and hope we can continue to grow and deliver for more clients in the future.”
