Novia to launch fractional dealing on ETFs by year end

Technology-Binary-Data-Tech-Code-700.jpgNovia Financial has confirmed it will offer fractional dealing for ETFs on its DFM service Copia Capital Management by the end of the year.

Currently clients trading in ETFs on platforms can often only buy whole units, meaning many DFMs and others running model portfolios on platforms cannot achieve the exact percentage holdings they want in ETFs.

Fractional shares enable platforms to buy just a fraction of an ETF costing as little as one penny rather than a whole share which could cost up to £100 each.

Novia partnered with Winterflood Business Services at the end of last year to offer low-cost ETF trading for its clients. The firm says the new technology “will help drive down affordability” and “enable choice for advisers”.

WBS introduced fractional dealing in July and online investment manager Nutmeg rolled it out earlier this year.

Elsewhere, Novia’s DFM Copia Capital Management, which marked its third anniversary this year, has launched a new range of five multi-asset portfolios, called the Select portfolio range. It said it is also eyeing a launch of income-focused funds following thepension freedoms demands.

At the same time the firm has appointed Elston Consulting’s former head of research Henry Cobbe as its new leader.

Novia Financial chief executive Bill Vasilieff says: “We are delighted to mark Copia’s three-year milestone with this significant investment of resource. We want to create a discretionary manager that is clearly differentiated by its focus on client outcomes, its use of quantitative investment techniques and its deployment of cost-efficient ETFs to help clients meet their goals.”