Tatton Investment Management, which works with more than 900 advice firms, launched its own money market portfolios in August 2023, following feedback from IFAs.
More than six months on from this, the firm’s chief commercial officer chatted to FT Adviser about the popularity of the funds.
Justine Randall said: “The market has been very busy over the past 12 months, we have been very fortunate to be operating in a growing MPS landscape.
“We have continued to grow our own offering in response to IFA demand.”
Randall added: “In August we had an unusual set of dynamics. We were getting a lot of feedback from advisers who said people were taking their money off of platforms and putting it into cash accounts.
“Advisers asked if we would consider offering a cash equivalent.”
Back in August, the firm expanded its MPS to include a “money market” risk profile.
The firm said this created an option for clients who wanted to benefit from elevated rates without taking money off platform, locking up their money for a fixed term, or being limited to the offering from retail banks.
Typically the funds hold a range of low risk investments including, for example, overnight deposits, government bonds, and short term commercial debt.
The standard Tatton fee of 0.15 per cent applies to this product and the target ongoing charge, before platform and adviser charges, will be between 0.12 per cent and 0.15 per cent.
The products have grown in popularity as a result of rising rates.
“Key for the adviser is that they retain control of the asset and can keep it all on one platform,” said Randall.
“From a client perspective it is also great, it closely tracks the Bank of England rates.
“Advisers can use it as a temporary solution but we are seeing it used for decumulation clients.”
Tatton’s interim results, published in November 2023, showed its assets under management increased by 19.8 per cent during the six month period to the end of September.
It put this down to “the growing maturity of the model portfolio services market”.
The introduction of the Financial Conduct Authority’s consumer duty rules has also helped Tatton, added Randall, in part due to more people seeking out managed portfolios.
She said: “It has been a very positive piece of regulation for us as a provider - it has led IFAs to our service.”
Also rising in popularity from advisers, said Randall, is white label and tailored options on offer.
tara.o'connor@ft.com
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