ETF-investing platform InvestEngine has launched a range of fully managed investment portfolios it has named Lifeplans, putting the firm in competition with robo-advisers like Nutmeg, Moneyfarm and Wealthify.
Each of the new five-risked rated Lifeplans invests in a range of exchange‑traded funds and charges a yearly management fee of 0.25%, among the lowest on the market, on a minimum investment of £100.
By comparison, Nutmeg’s fully managed service annually charges 0.75% up to £100,000 and 0.35% on any amount beyond this, excluding fund costs which take another 0.20% of invested assets.
Moneyfarm charges a management fee of 0.65% across the board, again excluding underlying fund costs of 0.20%. Wealthify charges a management fee of 0.6%.
Through trackers each option is invested in thousands of stocks and bonds across regions, sectors, currencies and asset classes. Each portfolio varies from 20% to 100% equity exposure.
They are available through the firm’s Investment ISA, as well as its General, Pension and Business investing accounts.
Each portfolio can be viewed in detail with a look-through feature and all are overseen by InvestEngine’s team of investment specialists.
In May, InvestEngine announced it had passed a milestone of £500 million in assets under management on the back of increasing passive investment by UK clients. It has more than 50,000 customers.
In addition to its managed portfolios, the platform currently offers traders access to over 620 ETFs drawn from providers like Vanguard, iShares, Invesco, and JP Morgan.
The Good Money Guide’s latest InvestEngine review found it to be “a good way to buy ETFs”.
We noted: “InvestEngine makes it really simple to get started by investing in ETFs with zero commission, although the market range is a bit limited if you are looking for more complex asset classes.”
One of the positives is the firm’s comparatively low-cost approach, given it is free for users to buy and hold ETFs in a GIA and ISA, though they have to pay charges to the exchange. Its SIPP is very low cost as well, at 0.15%.
InvestEngine is able to keep fees at such low levels by taking the interest on uninvested cash, which means users do not receive this money as they do for most other platforms.
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
You can contact Robin at robin@goodmoneyguide.com
