Tilney merger helps Smith and Williamson MPS negotiate better fees

First by reducing the costs of the underlying funds through introducing smart beta funds to sections of the portfolios on the one hand, and using the firm’s scale to drive actively managed fund costs down on the other, which together cut costs by 0.13 per cent over the year.

A second factor has been the removal of VAT on the 0.3 per cent annual management charge, cutting 0.06 per cent of the overall costs.

The third factor has been an average reduction in transaction charges of 0.03 per cent across the range.

It said together these have reduced average total costs from 1.21 per cent to 0.99 per cent over the year, excluding platform fees. 

Craig Wright, managing director at Tilney Smith & Williamson, said: “We launched the Tilney Model Portfolio on Platforms service in 2011 to allow financial advisers to outsource their investment management to a trusted partner and be able to spend more time with their clients and grow their businesses.  

“The Tilney Model Portfolios on Platforms range, which is focused on open-ended funds and ETFs, complements our Smith & Williamson MPS offering, which is distinctive in incorporating positions in investment companies.

"The reduction in the costs... is great news for financial advisers and their clients."