Passive MPS
Low-cost access to diversified, highly liquid, risk managed portfolios.
Concerned about the ability of active investors to continually beat the market?
Our Passive MPS is the perfect solution: a multi-asset portfolio of index-tracking funds aligned to our global asset allocation framework.
0.05%
Annual Management Charge
For investors seeking a low-cost, whole-of-market multi-asset investment portfolio composed of tracker funds.
About Our Passive Investment Strategy
- Our Passive MPS is fully whole-of-market, utilising our best-in-class selection criteria aimed at minimising costs and tracking error.
- The investment strategy is constructed using low-cost, physically replicated index-tracking funds. The portfolio utilises our global multi-asset strategic and tactical asset allocation framework.
Objectives and Investment Policy
Fund Selection
Your investment will be allocated to index-tracking funds and ETFs only.
Asset Allocation
Your investment will be allocated to fixed income and equity funds.
Risk Management
Risk will be maintained within defined risk profile constraints. Our strategy utilises both volatility and equity risk ranges.
Rebalancing
Minimum semi-annual rebalancing.
Performance Target
Aims to outperform the peer-group and reference benchmark by 0.5-1% annualised p.a net of fees on a 5-7 year rolling basis.
Why choose this portfolio:
Very low-cost.
Our Passive MPS is highly cost-effective, with an annual management charge for the strategy set at 0.05%, one of the lowest in the UK for a passive portfolio.
Evidence-based, broad market exposure.
A straightforward and transparent approach to obtaining global multi-asset market exposure.
The asset allocation of the strategy is in line with our independent, evidence-based asset allocation framework.
Whole of market product selection.
Our Passive portfolio selects from a full range of highly reputable index-tracking product providers.
As a fully independent solutions provider, we select based on merit: low cost with low tracking error.
Target Market
The Passive MPS is aimed at investors with a preference for tracker funds, seeking a low-cost, diversified and risk-controlled investment portfolio that is actively managed.
Our Passive Investment Strategy is highly suitable for retail clients and is intended for distribution via FCA authorised financial advisers that have conducted the relevant work to determine their clients’ circumstances, objectives, risk tolerance, appetite, and responsible investment objectives.
Client type
Retail and professional investor.
Knowledge and experience
Basic investor, informed investor, advanced investor.
Capacity for loss
No capital guarantee.
Risk profile
Offered in five defined risk profiles.
Recommended time horizon
Minimum 5–7-year investment time horizon.
Distribution strategy
Investment advice.
Negative Target Market
- Not suitable for clients unable to bear potential losses.
- Not suitable for clients with an investment time horizon of less than five years.
- Not suitable for clients seeking a portfolio with a sustainability focus.
- Not suitable for clients seeking an income generating investment solution.
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