Parmenion has added a range of model portfolios investing in a range of exchange-traded funds to its platform.
Advisers can now access the Twenty20 Investment’s discretionary fund management service, which is made up of 10 risk-rated portfolios and built using ETFs.
The model portfolios use a framework which adapts the asset allocation process in line with changes to the wider economy.
Allan Lane, managing partner of Twenty20, said: “We are strong believers that innovative use of technology offers the best hope of driving costs down.”
He said combining Parmenion with the company’s “rules-based ETF investment engine” seemed like a “no-brainer”, particularly as Parmenion has built its reputation on the increasing trend for advisers to outsource the investment process to DFMs.
The portfolios have an annual management fee of 0.35 per cent.
Last month, Parmenion announced it had created 10 model portfolios designed specifically to cope with the “challenges” retirees face when withdrawing their pension funds.
Dan Farrow, director of SBN Wealth Management, said: “I have been extremely cautious about recommending ETFs unless the client wants a niche punt, such as shorting an index.
“At 0.35 per cent, it’s not a cheap option when compared to some trackers, such as the Vanguard range.”
However, Gary Nettleingham, managing director of Catalpa Financial Planning, said: “With asset allocation being the main driver of investment returns and the underlying passive investments continuing to bring down costs; it is unsurprising that demand for these types of dynamically managed models continues to broaden.”
katherine.denham@ft.com
