Wealth management giant Evelyn Partners is introducing a minimum fee for its discretionary portfolio service (DPS) to “reflect its higher costs to deliver”, International Adviser has learned.
Clients with portfolios worth under a certain amount were contacted last month to let them know that the service “will be unlikely to be cost-efficient” for them once the minimum fee is implemented.
While Evelyn has not disclosed exactly what the minimum fee will be, one client, understood to have an investment portfolio worth £220,000, was contacted to suggest that they switched to Evelyn’s Investment Advice with Custody service as the DPS would no longer be good value for money once the minimum fee is introduced.
The minimum fee will come into effect for new clients “shortly”. There is currently no timeline set for existing clients.
A spokesperson for Evelyn Partners told International Adviser: “Our DPS is designed for clients seeking a bespoke investment management experience, which is typically recommended for those with more substantial portfolios that fit with the complexity and customisation of the service.
“In line with the FCA’s Consumer Duty requirements and practice across the sector, we are ensuring that clients receive the most appropriate investment solution and service for their needs.
“To help our investment management team guide new clients towards the most suitable solution for their assets under management level and complexity, Evelyn Partners will shortly be introducing a minimum fee for the discretionary portfolio service, reflecting its higher costs to deliver.
“For existing clients, many of whom have longstanding relationships with the firm, we will open a dialogue to make sure – again, in line with Consumer Duty – that they are in the most suitable service for their needs, so that they can consider their options at leisure. We have not set out a timeline for introducing minimum fees for existing clients.”
