PassiveJun 22 2018

AJ Bell adds EValue and Defaqto risk ratings to funds

Search supported by

AJ Bell has added EValue and Defaqto risk ratings to its managed portfolio service (MPS) and passive funds.

AJ Bell’s MPS and funds are now risk rated by four of the main services used by financial advisers - Dynamic Planner, Finametrica, EValue and Defaqto. 

This offers advisers choice and makes it easy for them to meet their suitability requirements by matching the investment range to the risk appetite of their clients. 

AJ Bells MPS one has a risk rating of three by EValue and Defaqto, while its MPS two has a risk rating of five by EValue and four by Defaqto.

The MPS three now has a risk rating of seven by EValue and five by Defaqto, while MPS four has a risk rating of eight by EValue and six by Defaqto, while MPS five has a risk rating of nine by Evalue and seven by Defaqto.

Kevin Doran, chief investment officer at AJ Bell, said: “We know that many advisers use the EValue and Defaqto ratings so we’re pleased to offer these options for both our MPS and passive funds. 

"Ensuring suitability of their recommendations is clearly vitally important to advisers and so we were very keen to map our funds to all of the main risk rating services they use. 

"Building on our commitment to offer advisers choice, this development will make it even easier for advisers, using the big four risk-profilers to incorporate our MPS and funds into their existing business processes.”

AJ Bell’s MPS offers advisers and their clients 16 portfolios with a choice of active or passive investment approaches and both capital growth and income objectives.

For advisers looking for a low cost fund solutions, AJ Bell offers a range of six multi-asset passive funds.

The AMC of both the MPS and the passive funds was recently reduced to 0.15 per cent.

Kusal Ariyawansa, a chartered financial planner at Manchester-based Appleton Gerrard, said:  “This is a sensible move by AJ Bell and would ease the suitability recommendation process for most advisers who chose to delegate such investment choices to a third party. Personally, I would not apply ongoing adviser fees to such portfolios managed by third parties.”