Transact has selected BlackRock to provide and manage its latest model portfolio service (MPS) in a move that will see the asset manager take charge of its first MPS range on a UK advisory platform.
Assets managed by third party discretionary investment managers (DIMs) on the Transact platform have more than doubled in recent years, as advisers focus on reducing costs and risk, the company said.
The MPS range will consist of seven discretionary risk-managed model portfolios with varying volatility and asset allocation ranges comprised of index mutual funds, ETFs and cash. It will have a target allocation of 60-80% in iShares index mutual funds and ETFs and up to 40% index products from other asset managers.
BlackRock’s head of UK advisers and platforms, Heather Christie, said: “We are excited to have been selected by Transact to design and manage the Transact-BlackRock MPS range. The UK savings and investments market is evolving rapidly with advisers increasingly adopting discretionary investment management services.”
Transact chief executive Jonathan Gunby said: “Advisers have told us that third-party discretionary investment managers help to reduce cost and risk in their businesses, whilst allowing them to spend more time with clients.
“Hence we saw an opportunity to offer an additional DIM service offering value for money via BlackRock, recognised by clients and one of the world’s largest discretionary managers and leading risk managers.”
