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Decumulation: the process of converting pensions and savings into an income for retirement
Brooks Macdonald Platform Managed Portfolio Service
An introduction
The way in which costs and charges are being presented throughout the wealth management industry has changed and we are now seeing demand for products with a greater focus on price.
We have lowered our headline rates across the range, making the PMPS Ongoing Charges Figure (OCF) highly competitive for platform portfolios, while investors retain access to our Centralised Investment Process (CIP).
We are excited to be offering our core MPS service to you through platforms and invite you to read through the information provided in the pages ahead.
At Brooks Macdonald, our commitment to advisers and their clients involves responding to the demand for new, innovative products and services when it arises.
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Our Centralised Investment Process
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Embedded within, qualitative and quantitative risk controls also ensure that adequate portfolio diversification is achieved via investment in a wide range of asset classes.
The process allows each client to leverage the broad expertise of our Asset Allocation, Asset Selection and Investment Committees, as well as the in-depth knowledge of our specialist sector research teams. It is designed to identify the best investments amid the ever-changing investment environment and has been proven to add value for our clients.
Our Centralised Investment Process (CIP) combines strategic and tactical approaches to asset allocation with vigorous individual security selection.
We offer a range of services that utilise the CIP.Our core services fully utilise the process and can invest in any asset class or underlying investment without constraint.
We also provide asset-constrained versions of our services, which can have certain exclusions. For example, services run within offshore bond tax wrappers are unable to purchase certain types of investment.
Finally, we provide cost-targeted versions of our services, which utilise the process but can substitute certain investments in order to target a specific level of costs and charges.
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Robin Eggar Managing Director, Co-Head of UK Investment Management
Advisers are faced with the dilemma of providing a high-quality investment solution to their full range of clients whilst being mindful of the impact high fees can have on client returns. By revising our target OCFs for our Platform MPS service, we are helping advisers to deliver that service to their clients in a way that ensures the total cost to the end client remains competitive.
We believe our investment expertise puts us in the position to successfully identify active funds that can outperform their benchmarks and add value for clients, despite their higher costs. Indeed, our performance record supports this fact.
Nevertheless, we recognise that there is demand for lower cost versions of our services. To honour this objective, we can increase our allocation to passive instruments and reducing allocations to sectors such as alternatives, while aiming for this approach to have minimal impact on our performance objectives.
Our PMPS range is available on a growing number of platforms, and further announcements will be made on more additions in the near future.
Our response to changing demand
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The Ongoing Charges Figure (OCF) is now targeting 1% p.a. for our active range, and 0.50% for our passive range. The OCF is inclusive of the annual management charge, plus VAT.
Can be held in a range of tax efficient wrappers
(ISAs, SIPPs, onshore, offshore)
Utilises our proven centralised investment process
Volatility boundaries ensure ongoing performance suitability
A selection of 10 risk-managed, diversified model portfolios
A further 8 managed volatility portfolios
/ A selection of ten risk-managed, diversified model portfolios covering a wide range of investment objectives and risk profiles, for clients with £20,000 or more to invest.
/ Available on multiple platforms exclusively through professional advisers.
/ Provides access to our discretionary management expertise.
/ Utilises our proven centralised investment process.
/ Managed by a dedicated team of experienced investment managers.
/ Portfolios are regularly rebalanced to ensure all clients remain in line with the asset allocation of their chosen model.
/ As well as being a stand-alone service, our PMPS can be held within a range of tax wrappers, including:
Key facts about the PMPS Managed Portfolio Service
Tax treatment depends on your individual circumstances and may be subject to change in the future
/ Self-Invested Personal Pensions (SIPPs)
/ Small Self-Administered Pension Schemes (SSAS)
/ Trust and charity accounts
/ Onshore/offshore bond accounts
/ Individual Savings Accounts (ISAs)
Important informationThe value of your investments and the income from them may go down as well as up. You may get back less than you invested. Past performance is not a reliable indicator of future results. Brooks Macdonald is a trading name of Brooks Macdonald Group plc used by various companies in the Brooks Macdonald group of companies. Brooks Macdonald Asset Management Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered in England No 3417519. Registered Office: 21 Lombard Street London EC3V 9AH. More information about the Brooks Macdonald Group can be found at www.brooksmacdonald.com.
For more information, please get in touch with your usual Brooks Macdonald contact.
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