Billed as being a hybrid of typical model and bespoke solutions, Model Plus also incorporates a loan facility, allowing investors to raise cash without having to sell a stock. This option may be suitable for clients who have acquired or inherited alternative assets but would otherwise be suited to a typical model portfolio.
While Wellian says that around 80% of clients will be suited to model portfolios, it found that the remainder will not always be suited to bespoke options which are typically suited to high-net-worth or ultra-high-net worth clients rather than the average investor.
Investment director Chris Mayo said: “We find that the majority of clients will be serviced with a standard model portfolio, however our recent conversations with advisers have brought to our attention that there are still a small but growing number of investors requiring more of a hybrid solution.
“As it is our continued aim to cater for every possible requirement, however small, we have spent a lot of time and effort in developing Model Plus to bring advisers yet another option for servicing their clients with less than conventional needs so they can extend their offering to a whole new pool of investors.”
Wellian works exclusively with advisers and in May it compliled a five-point checklist for chosing a DFM.
