Elston Portfolio Management has launched its money market portfolio MPS service for advisers looking low risk, yield-focused investments.
The management fee for the portfolios is 0.05%. The blended ongoing charges figure of the portfolio is 0.13%. The blended yield of the portfolio is currently 5.3%.
The portfolios are initially available on nine platforms. Further platforms will be added in the future, at the request of advisers.
The strategy was designed by Elston Consulting, which supports UK discretionary managers and financial advisers with their investment solutions.
While multi-asset portfolios remain the mainstay of medium- to long-term investment strategies, the service recognises demand in the near-term from advisers and their clients, for low-risk investments which can be held on platform and provide a solid yield similar to the Bank of England base rate.
Money market funds can be considered as an alternative to platform cash or bank deposits from a yield perspective. Banks are required to hold a proportion of capital held for customers in money market instruments (cash, time deposits, certificates of deposit, commercial paper, floating-rate notes, and short-dated government bonds).
Scott Adams, head of adviser relations at Elston Consulting, said: “With the Bank of England rate skyrocketing from 0.1% to 5.25% in the last 20 months, and broader concerns around the direction of the markets, there is growing appetite from advisers and their clients for low risk, yield-focused Investments that can be held on platform and closely match the Bank of England rate.”
