The cost of Tilney Smith & Williamson’s model portfolios on platforms has reduced by an average of 18.4% over the past 12 months.
The company said in the case of its Tilney Income & Growth strategy, the reduction was 26.7%.
The range available on external platforms includes seven risk-rated models and two income focused strategies.
It said costs were reduced in three ways. The first, and largest factor, was a reduction in the cost of underlying funds through the use of smart beta funds and using scale to drive down the costs of active funds. This shaved the costs of underlying funds by 0.13%.
The removal of VAT on the 0.3% annual management charge for the service also cut 0.06% from overall costs, and it saw a 0.03% average reduction in transaction charges across the range.
Together these measures reduced average total costs from 1.21% to 0.99% over the year, equivalent to an average total cost reduction of 18.4%.
Tilney Smith & Williamson managing director Craig Wright said: “Over the last decade we’ve seen interest in our outsourced solutions grow as financial planning firms increasingly grapple with the complexities and costs of investment management. The reduction in the costs of our Model Portfolio on Platforms service is great news for financial advisers and their clients.”
