PSigma Investment Management is offering its discretionary investment management service, Managed Portfolio Service, with lower fees as the retail distribution review is approaching.
Previously called the Wealth Management Solutions, the Managed Portfolio Service is comprised of four strategies: cautious, balanced income, balanced, and growth.
PSigma has lowered the annual management charges to 1%, resulting in a total expense ratio capped at 1.75%.
“We have been able to keep our costs lower through the sole use of institutional units and an increased use of physically backed passive funds,” says John Howard-Smith, the chief executive officer.
Part of the Financial Services Authority’s consumer protection strategy, the retail distribution review aims to offer a “fair charging system” for advice.
With commission-based advice to be banned, independent financial advisers are likely to consider low cost products for their clients.
In recent months, several groups have launched low cost products. Those include HSBC Asset Management, JP Morgan Asset Management, Schroders Investment Management and Fidelity Worldwide Investment.
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