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PanDYNAMIC Model Portfolios

Services and Costs

PanDYNAMIC Model Portfolios

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How PanDYNAMIC Model Portfolios work for the client

With Model Portfolios an adviser’s clients do not put money into an independent structure. Instead they link money in an account on their wrap platfom to one or more Model Portfolios. The wrap platform automatically populates their account with the appropriate underlying investments to replicate the selected Model Portfolio. These investments, normally low-cost Exchange Traded Funds or conventional funds, are automatically adjusted each time the appropriate Model Portfolio is updated or rebalanced. Changes to the portfolio will usually be made monthly, but may take place more frequently in extreme market conditions. The investor client can hold the chosen Model Portfolio(s) within a range of available tax wrappers.

How our service works for a Financial Adviser or Professional Intermediary

The Adviser must either be an existing user of the Ascentric, AXA Elevate, Transact or Novia wrap platforms or open an account with the platform provider for clients wishing to invest in the Model Portfolios. 

Each time the assets or weightings of a Model Portfolio are adjusted the linked assets in the client portfolio will automatically update or change.

The result is that the investor client will have professional discretionary portfolio management at a fraction of the normal cost.

The costs

Advisers are an integral part of the Model Portfolio Service. They check the suitability of the Model Portfolio for their client’s needs at the outset. They then monitor performance of the selected Model Portfolio, check that it continues to be suitable for their clients and act as the interface between Pan Asset and their client. For this service they will agree a fee with their client which is normally a per annum charge based on the value of the client’s assets. In addition to this, the client will pay Pan Asset’s annual investment management charge of 0.25% of assets linked to the Model Portfolios. This fee includes VAT.  The wrap platform will also levy a small annual charge plus additional charges for certain tax wrappers such as SIPPs and offshore bonds. Dealing charges vary between platforms and types of fund but can be £1 per transaction or less. These discounted dealing fees may only be offered by the platform in connection with  the Model Portfolios.

The Benefits

  • Reduced overall cost to the client
  • Clearly defined risk and return benchmarks
  • Dynamic asset allocation process including holding cash to preserve capital
  • Simple to use and highly liquid
  • Clear reporting
  • Investment support
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