Gina and Alan Miller have today launched three direct-to-consumer online investment platforms which aim to undercut competing platforms by up to 30 per cent on costs and fees, which Ms Miller referred to as “disruptive”.
The new websites are aimed at very specific groups, with a service targeted solely at female investors called www.moneyshe.com, another for 25-45 year old professionals called www.scmdirect.com, and the third for over 50s called www.scm50.com.
Ms Miller said: “Some of you know us and some are newcomers and you know that at SCM we have a rather disruptive voice. What we would like to do today is launch something that we would like to be even more disruptive.”
The pair have slashed their annual management charge from 0.75 per cent to 0.4 per cent, leaving the “true cost of investing” at 1.2 per cent including platform fees.
Minimum investment fee is £15,000 and there are three ways to invest: directly into the portfolios, via an Isa and via a low cost Sipp. SCM Direct has paired with Pointon York to provide a Sipp at the cost of £150 per year plus Vat.
The platforms each offer three pure ETF core portfolios, three blended portfolios and three currencies in pounds, dollars and euros.
Ms Miller said: “We are keeping the choices very simple in threes because that’s how people assimilate information from all the research we have done.”
Mr Miller said: “All three sites have the same engine, the same investment solutions powering them and what we are trying to do is balance cost, risk and return rather than just go for return and play high levels of risk, or a very low cost at low return.
“We are trying to seek a balance between the three and actually use technology to improve efficiency, to reduce costs, to improve transparency... the world of investment hasn’t really changed for about 20 to 30 years - technology has changed everything else beyond recognition and investment has hardly changed.”
Mr Miller added: “We add value as a manager through asset allocation and timing. We tend to make changes in an evolutionary market rather than through one particular market or theme... when everyone is going into one area that should ring alarm bells.”
Alongside the launches of the new platforms SCM Direct has commissioned research into the UK household market, called ‘Generation Pause’, which has revealed that many are putting marriage, children, house buying and retirement on hold, in part as a result of inadequate financial planning.
The research shows that one quarter believe they will never own a property and one fifth are postponing marriage plans for over two years. In addition, one in six 25-54 year olds have no confidence in the ability of their savings and investments to pay for their life plans.
