Since Launch in February last year, the service has gathered some £450m invested in portfolios held within collective retirement accounts. Other wrappers are ISAs, collective investments and ‘unwrapped’ collective investment accounts.
To date, 75% of all investments have been directed towards portfolios of actively managed funds, with the remainder in passive blend portfolios that incorporate some low-cost index funds.
Old Mutual said the most popular portfolios reflect the preference most customers have for a blend of growth and risk control. As a result over nearly 75% of assets invested in the portfolios have been directed in to portfolios 4, 5 or 6, the middle of the risk scale.
“When designing the WealthSelect Model Portfolio Service we spent a lot of time researching and understanding what advisers and their clients wanted from an investment solution,” said Scott Goodsir, Old Mutual Wealth’s head of UK distribution.
“What has been pleasing is that different advisors have felt it to be suitable for different parts of their respective client banks. There have been many positive comments about the service, particularly regarding the white labelled quarterly reports.
“We recognise the value of advice and the role that advisers play in delivering great outcomes for customers and as such we will continue to develop services and tools that allow advisers to enhance the service they provide to their clients.
“The £1bn milestone has been reached well ahead of expectations and we continue to attract new flows rapidly.”
