Wealth manager SCM Private has made its model portfolios available on Praemium's Discretionary Platform Service for IFAs.
The portfolios, managed by Alan Miller, were previously only available direct and to high net worth clients.
SCM's products allow investors to invest in a combination of ETFs that are continuously actively managed. The company says this provides a third option away from the traditional active versus passive choice: the "actively passive".
SCM is currently offering the Long-Term and Absolute Return Portfolios, which produced returns of 28.9% and 24.4% respectively over the last 17 months. SCM says investors can expect a typical 40% turnover per annum for the Long-Term Portfolio, and 69% per annum for the Absolute Return.
The Praemium dps Select provides advisers and wealth managers with an online platform that allows the IFA to select models that best address the needs of their clients. Managers can also blend models in order to better match the requirements of the end investor.
Alan Miller, SCM Private founding partner and fund manager, says that the move enables advisors to retain complete control of the relationship with their clients, their assets, and their chosen manager.
Praemium's managing director, John Martin, explains that the platform's technology is ideally suited to SCM's investment strategy as it allows continuous adjustment of the models.
The portfolios carry a 0.75% plus VAT annual management fee, although this will reduce down to 0.50% plus VAT for large sums - typically anything above £10m.
SCM claims their products could save investors between 33%-48% in total costs of investment against an average IMA Balanced Managed Fund of Funds or Absolute Return Fund.
An ambitious objective
'Something completely new'
'Illusion of control'
Reasons to be cheerful
Total investment reaches £9m