Fund platform AJ Bell has expanded its range of model portfolios.
The the investment house launched six products, grouped according to risk, with each of the six investing in a combination of active and passive funds.
The existing range of funds, which will continue to be available, are passive only. The fees on these products were cut last week to 0.35 per cent.
The fees on the new range are between 0.75 per cent and 0.96 per cent.
The risk profiling for the range is performed using technology from Finametrica.
Kevin Doran, chief investment officer at AJ Bell said: "Growing numbers of financial advisers are choosing to use managed portfolio services and the launch of our Pactive portfolios gives them greater choice and flexibility to meet a wider range of client needs.
"Some will want exclusively active management and some will be fans of the passive approach but in the middle are those that want an element of active exposure with the cost control that passive investments can deliver.
"It’s our view that advisers know their customers better than anyone else and so our MPS is designed to give advisers the options they need to meet their requirements."
Minesh Patel, adviser at EA Solutions in London, said: "The costs are reasonable but how is it any different to other propositions which are available on the market."
david.thorpe@ft.com
