Robo adviser Netwealth has launched a model portfolio service, as it aims to win the business of financial advisers and their clients.
Available through the Transact platform, the new service will provide access to seven risk-return profiles and carries a discretionary fund management fee of 0.2% + VAT.
The portfolios will mainly invest through passive instruments such as Exchange Traded Funds (ETFs), with currency and asset allocation actively managed on a cyclical basis.
Netwealth chief executive Charlotte Ransom (pictured) said: ‘The launch of our new managed portfolio service marks another milestone for Netwealth as the business continues to scale and develop its proposition.
‘We have long fought to raise awareness of the destructive impact high fees can have on client returns, and are delighted to bring our sophisticated, cost-effective service to the intermediary market, enabling the clients of financial advisers to benefit from Netwealth’s thoughtful approach to investing.’
Last December Netwealth said that ‘focused and disciplined investment’ in technology, people and marketing was behind a loss of £4 million in 2018.
The online wealth firm's revenue rose nearly five fold over the year to £212,500, while its headcount increased by 56% to 25 from 16.
The firm launched in May 2016 and has raised £16.6 million in funding from City heavy hitters, including Edward Bonham Carter, vice chairman of Jupiter Fund Management, Harvey McGrath, former chairman of Man Group, and Santander vice chairman Bruce Carnegie-Brown.