The Morning Briefing: Rates get ready to rumble

Good morning and welcome to your Morning Briefing for Thursday 24 September, 2020. To get this in your inbox every morning click here.

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Rates Get Ready To Rumble

Investec Wealth and Investment is throwing down the cost gauntlet this morning by launching a 0.2 per cent managed portfolio service. Technically speaking, it was already available on Standard Life, but at a higher price, and is now being wheeled out across a wider range of platforms.

It certainly puts the cat amongst the pigeons, following where the likes of Tatton and Sparrows have gone before in challenging traditional discretionary managers on price.

As ever, its the total cost of ownership that matters though. That 0.2 per cent is just for access to the portfolios, remember, not the underlying funds. And it doesn’t include VAT. Investec is hoping its existing adviser base will double down, but also that it can steal some new IFA clients from elsewhere. Whether it can do so will be key if it wants to run the cut-price offering at sufficient scale to make a profit.

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