Charles Stanley will soon join the cohort of wealth managers that have axed VAT from their Managed Portfolio Services.
The company will cut the tax across its Dynamic Passive, Blended and Multi-manager models from 1 March 2021. This will see the fees on its MPS models being charged from as low as 20bps and total charges from as little as 30bps, according to Charles Stanley.
Charles Stanley is the latest wealth manager to announce it is scrapping VAT. AJ Bell, Brooks Macdonald and Brewin Dolphin are among those who have already cut the tax on their model portfolios.
ESG ratings rolled out for MPS range
Alongside the VAT cut, Charles Stanley announced a partnership with MSCI which sees its full range of model portfolios become ESG-rated.
Sean Osborne, head of national accounts at Charles Stanley, said the move was done to meet the growing demand from clients for socially responsible investing propositions.
In a recent report Charles Stanley found that 23% of advisers reported seeing a greater appetite for ESG/sustainable investing from clients last year, while seven in 10 advisers believe that changing investment trends such as ESG will impact the long-term future of their business.
“This exceptional value, combined with the addition of our new ESG ratings, further underpins our commitment to advisers who are seeking greater value for money, whilst responding to changing client needs,” Osborne said.
He added: “Many clients are now seeking greater transparency on the impacts their portfolios are having on the environment and on our society as a whole.”
AJ Bell has also announced plans to launch a socially responsible MPS range.
