Subject to FCA approval, the risk-rated passive solutions – Cautious, Moderately Cautious, Balanced, Moderately Adventurous, and Adventurous – will be available both for IFAs and direct to consumers via the AJ Bell platform before the end of Q1.
The funds will be managed by head of fund selection, Ryan Hughes, who joined the firm last autumn from Apollo Multi-Asset Management.
Hughes will have a whole of market remit across passives and ETFs, while long-term strategic asset allocation will be managed via a tie-up with Moody’s Analytics.
The passive funds will invest across equities, cash, fixed income and property (via Reits). Specific targets and fees for the funds have yet to be revealed.
“The FCA asset management study has focused the spotlight on the fund management industry and active fund management fees in particular,” said Hughes.
“This will be a common theme over the next few years and active fund managers are going to have to work harder than ever before to justify the fees they charge in relation to the performance they deliver.
“I think this will further increase the demand for passive fund solutions that we have seen growing slowly but surely over the past couple of years.
“We see an opportunity to help advisers there by building investment solutions that give them low cost portfolios for their clients using passive investments.”
