Legal & General Investment Management (LGIM) has launched a model portfolio service (MPS) in partnership with investment consultancy and IFA firm Apollo Investment Management.
LGIM will provide Apollo’s clients under the IFP Associates banner with five tailored model portfolio options across risk levels. The initial annual management fee is 6bps.
The firm will rebalance the portfolios on a continuous basis to ensure investments match investors’ risk and return profiles.
LGIM will also take on mandatory due diligence required under Consumer Duty, including the management of risk, compliance and reporting functions.
The portfolios will be white-labelled and the wrap-around service will include regular investment and strategy updates from LGIM’s investment and distribution teams in conjunction with Apollo.
This new partnership will stretch across a broad range of funds and research capabilities, with input on fund selection and asset allocation by both parties.
It will also allow Apollo to use data and investment insights from LGIM’s asset allocation team of over 40 investment professionals, headed up by Emiel van den Heiligenberg.
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LGIM said the tie-up builds on the momentum of its MPS business, with its model portfolios added to SimplyBiz’s risk controlled investment solutions range earlier this month.
The wider MPS proposition now services almost 40 clients and partners across a number of adviser platforms.
Dorian Squires, investment director at Apollo IM, said: “This partnership has real benefits in efficiency making things much more scalable. In addition, the symbiotic relationship with the wider LGIM research capabilities allows for a much wider range of levers that can be pulled within the portfolios to seek to enhance returns for the end investor.”
James Crossley, head of UK wholesale at LGIM, added: “We are excited to begin this collaborative new partnership and approach with AIM, offering their clients a broad range of funds and research capabilities.”
