Brewin Dolphin has launched a five-strong risk-rated passive funds range to its existing managed portfolio service.
The discretionary fund manager hinted at the launch in October, when the MPS hit £1bn in assets under management, increasing 62 per cent over the last year.
The MPS Passive Plus will consist of a portfolio including cautious, income, balanced, growth, and global equity funds.
As part of the firm’s MPS, the team will be able to allocate to active funds where it would “benefit the portfolio” and where passive funds might not offer replication such as in absolute return, the firm says.
Passive fund usage will vary over time but it is currently between 79 per cent and 100 per cent.
Charges for the portfolio will range will be between 0.12 per cent and 0.3 per cent, excluding platform charges. Fees will be levied at 0.2 per cent plus VAT for management charge.
Gareth Johnson, head of Brewin Dolphin’s managed investment services, says: “MPS Passive Plus will enable IFAs to choose the best possible investment strategy to fit with their clients’ expectations and investment needs.
“Brewin Dolphin’s new MPS Passive Plus range gives IFAs the best of both worlds with us actively reviewing asset allocation but using underlying cheaper passive funds to get the relevant market exposure. We have also ensured that as they launched, the major third party risk ratings are available from inception to further assist advisers.”