Quilter Cheviot has expanded the availability of its International Managed Portfolio Service (MPS) to international clients via the Morningstar Wealth Platform.
The International MPS has adopted the ‘Building Blocks’ approach from Quilter Cheviot’s UK MPS.
Launched in the UK in 2021, Quilter Cheviot’s Building Blocks approach consists of internally managed funds, across equities, fixed income and alternatives. These funds are designed to create optimal investment exposures for each MPS strategy.
These funds are now available within Quilter Cheviot’s International MPS through a range of feeder funds on the Morningstar Wealth Platform. This gives international financial advisers and their clients access to this approach, facilitating investment into the Building Block ‘master funds’ used within Quilter Cheviot’s UK MPS.
The range includes four equity funds (North America, UK, Europe, and Asia and emerging markets), two fixed income (Fixed Interest and Conservative Fixed Interest) and two alternatives (Diversified Returns and Alternative Assets).
Constructed in collaboration with Quilter Cheviot’s extensive research team, these funds provide MPS clients access to the firm’s best investment ideas across the direct equity, bond and whole-of-market fund universes. Externally managed funds continue to play a key role in the MPS construction, ensuring clients receive an active and diversified offering.
Quilter Cheviot further said it does not charge a fund management fee for the running of the Building Block funds, ensuring clients benefit from maximum cost reductions while mitigating conflicts of interest. Additionally, the International MPS management fee (for clients invested via the Morningstar Wealth Platform) has been reduced from 0.30% to 0.25%.
Simon Doherty, head of managed portfolio services at Quilter Cheviot, said: “Building Blocks has been received very positively by financial advisers and their clients in the UK. We are delighted to be able to bring the benefits to our international partners and harmonise the two ranges. Constructing the underlying investments in this way allows us to access asset classes not usually available within an MPS structure.
“With the strength and depth of our research teams across equities, fixed income and externally managed funds, we can swiftly adjust individual investment ideas without the need for a headline rebalance.”
Antony Webb, head of MPS investment funds at Quilter Cheviot, added: “This approach brings a number of benefits to advisers and their clients, particularly in the enhanced reporting we can now provide as the appointed investment manager of many of the underlying holdings. This offers considerably more detail on the composition of a client’s portfolio and their specific exposures.
“This move has also allowed us to lower costs for the end investor without compromising the active nature of the proposition. Our hybrid unitisation approach ensures clients get the best of both worlds when it comes to MPS and multi-asset funds.”
