AJ Bell is launching a model portfolio service early next year.
Chief executive Andy Bell says they will use the model portfolio service to develop their own range of funds ultimately.
“It will be a low-cost passive service with some active overlay,” Bell says.
“Our aim is to offer a service that is fully integrated with the platform so it will be easy for advisers to use and based around passive investments so it will be highly attractive from a cost perspective.”
Bell adds that they are not looking to develop direct client relationships and are not getting into full active management as it is not their expertise.