Legal & General Investment Management has launched a model portfolio service in a bid to meet rising demand from advisers.
The MPS is a range of growth and income model portfolios with varying risk profiles.
LGIM said it was a “move that is deemed highly competitive” and that the initial pricing would be set at an annual management fee of 6bps.
Head of retail multi asset funds Justin Onuekwusi will lead the MPS proposition, alongside the firm's asset allocation team headed up by Emiel van den Heiligenberg.
The team collectively oversee £63bn in multi-asset funds and will work in partnership with the solutions team which already oversees £200bn of institutional client portfolios.
Onuekwusi said: “In today’s market, advisers need a bespoke, yet easily accessible, range of solutions that cater to a broad range of risk profiles, price points and investment styles – this is precisely why we have launched our MPS.
“Leveraging our deep multi-asset expertise and responsible investing and stewardship credentials, our primary focus will be selecting the most attractive investments across asset classes, backed by robust research and risk management, with the aim of achieving long-term returns for our clients.”
The MPS range includes 21 growth-focused model portfolios and provides three low-cost investment styles.
These are the index-focused model portfolios offering exposure to a broad range of ETFs, ESG-focused model portfolios which will invest in ESG-focused funds, and blended model portfolios which will invest in active funds managed by LGIM and third-party managers.
LGIM will also offer four income-focused model portfolios, which will hold a balance of underlying funds to deliver income.
The firm said the team will regularly review and rebalance the portfolios to ensure that investments are continuously kept aligned with investors’ risk profiles and desired investment objectives.
LGIM said the MPS launch will offer opportunities “for partnerships at scale” and reflects the growing demand from advisers for competitively priced model portfolios.
James Crossley, head of UK sales at LGIM, added; “The launch of our MPS is a direct reflection of the demand we are seeing from advisers for competitively priced and flexible model portfolio solutions.
“We think this can disrupt the market whilst also applying our deep investment expertise, across different strategies, to ensure that our model portfolios offer attractive returns for clients in line with their investment goals.”
This latest launch follows LGIM's launch in April of a global thematic fund to allow UK investors to invest across multiple themes.
Last month, the firm said it will conduct ‘comprehensive reviews’ into five of its funds, after it found they were failing on value for money for investors.
sonia.rach@ft.com
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