RBC Brewin Dolphin has enhanced its managed portfolio service (MPS) with the addition of RBC Brewin Dolphin Blended MPS.
RBC Brewin Dolphin said: “The offering complements its existing MPS ranges and gives financial advisers further choice and cost control for their clients.”
The MPS features seven new, risk-rated model portfolios and uses a combination of actively managed funds and lower-cost index funds.
The mixture of active and passive or the “blend” element of the MPS has an aim to “enhance long-term investment returns” through the advantages of actively managed funds while reducing the cost through index funds.
The MPS will be rolled out on a phased basis with an underlying OCF ranging between 0.26% and 0.27% depending on the risk level.
It will be rebalanced monthly in line with the current MPS range to reflect market changes and the central investment team’s asset allocation decisions.
The Blended MPS is currently available on 18 platforms.
The firm’s existing MPS suite consists of flagship, Passive Plus and Sustainable.
RBC Brewin Dolphin head of intermediaries UK and international Antony Champion said: “In an evolving market, we continue to listen to the needs of advisers when we enhance our investment propositions.
“We are, therefore, pleased to offer advisers our RBC Brewin Dolphin Blended MPS, which gives advisers’ clients the same high-quality investment expertise and platform performance but with more choice to achieve long-term investment returns together with cost efficiencies.”
In February, the Financial Conduct Authority said it will launch a multi-firm review of MPS in 2025 to assess how firms are implementing the Consumer Duty.
In a letter the city watchdog published on 26 February, it explained that MPS have been growing “at pace”.
It added: “Though MPS sit outside traditional fund wrappers, these portfolios generally invest in investment funds, and asset managers are active in constructing and distributing these services.”
The FCA wish for this review to “provide confidence that investors are receiving good outcomes from MPS and share good practice on how firms are doing this”.
