AJ Bell is to launch an actively managed version of its Managed Portfolio Service (MPS), aimed at financial advisers.
There will be six portfolios benchmarked against Distribution Technologies risk profiles, ranging from three to eight on the risk profile scale.
AJ Bell stated the vast majority of the capital in the new portfolios will be in active funds but there will be passive exposure in instances where AJ Bell feels it cannot find active fund managers in whose performance it has confidence, at the right price.
Each of the portfolios will have around 15 funds.
The charges on the portfolios will range from 0.57 per cent to 1.02 per cent, depending on the risk profile of the portfolio.
Kevin Doran, managing director and chief investment officer of AJ Bell Investments, said: "Our passive MPS is becoming increasingly popular with advisers, particularly following the price cut we implemented earlier this month.
"Many of these advisers we work with have asked if we can add an active management option and so, thanks to our commitment to offer investors choice, we are delighted to be able to do that to meet this demand.
"Advisers will now have access to managed portfolios matched to six risk levels, with an active and passive option in each level."
But Paul Gibson, financial planner at Granite Financial Planning in Aberdeen, said: "As a firm we have avoided using actively managed funds for several years due to their high charges and general under performance."
david.thorpe@ft.com
