This article was originally published on this site
Investec Wealth & Investment has launched a low-cost online wealth management service that combines elements of automation while retaining an actively managed investment approach.
With a minimum investment threshold of £10,000, the wealth manager’s Click & Invest service is aimed at customers who would not normally be able to access its full-price offering, which starts at a minimum of £150,000.
Investors will be asked a series of prompted questions to gauge their risk appetite, after which their investment will be allocated between 300 actively managed funds. The wealth manager said a small proportion would also be invested in passive funds, exchange traded funds and gilts.
Fees for Click & Invest start at 0.65 per cent for the first £100,000 invested, 0.5 per cent for the next £150,000 and 0.35 per cent for stakes of more than £250,000. This compares with fees for Investec’s investment management service, where investors pay a maximum of 1.25 per cent a year on the first £1m, and then according to a sliding scale down to 0.6 per cent on amounts of more than £2.5m.
By comparison, Nutmeg, a robo-adviser with a minimum investment of £500, charges 0.75 per cent on the first £100,000 invested and 0.35 per cent thereafter.
Investors can access robo-adviser MoneyFarm, which was launched in 2011, for as little as £1. It does not charge for investments of less than £10,000 or more than £1m, but fees range from 0.4-0.6 per cent for amounts between the two.
Jane Warren, chief executive of Investec Click & Invest, said that while there was no personal contact with a wealth manager, technological advances meant that “we can now offer the service we have for our core clients in the digital world”.
Investec Wealth & Investment, which has £32.5bn of client funds under management, is the latest wealth manager to respond to a growing demand for automated services — and a lower entry point for wealth management.
Last year, UBS launched SmartWealth with a minimum investment of £15,000, far below the £2m needed to access an account at the private bank. Brewin Dolphin, the FTSE 250 wealth manager, launched a robo-advice service aimed at investors with between £10,000 and £200,000, carrying a charge of 0.7 per cent of invested assets.