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This is our digital platform that serves as a one-stop-shop for your centralised investment proposition. All research, due diligence, data (such as fund information, performance and risk) and client-facing documents are available for you to access on this platform.
Betafolio’s services and fees are separate from the adviser’s. Accordingly, while the fees paid to Betafolio by the client for portfolio management is VAT deductible, the advisory fee is typically not.
Yes. Advisers can opt a client’s portfolio in and out of the rebalancing process.
With a TAMP, a financial planner can access a range of services that allow them to offload time-consuming tasks, such as research, portfolio construction, rebalancing, performance analysis and reporting to a third-party. This allows them to focus on delivering core financial planning and behavioural coaching to clients.
Like many ideas in financial services, turnkey asset management programmes (TAMP) originated from the US in the 1980s. Some of the most well-known US-based TAMPs include BAM Alliance, Matson Money, Loring Ward and Symmetry.
The key difference is that TAMPs involve working in a more collaborative fashion with the adviser and provide a wide range of services that go beyond traditional discretionary management offerings. With TAMP, the advisers can contribute as much or as little as they want to the investment process.
Yes, this is exactly what we have in mind. Our intention is that advisers can promote their own brand, while Betafolio remains in the background, with only brief reference to the company name as required by regulation. For example, a firm may wish to refer to a model portfolio as CompanyNameX or alternatively, CompanyNameBetafolioX. Branding is at the discretion of the advisory firm.
Under the flat-fee option, advisers pay Betafolio a minimum retainer of £650 per month or £1,500 per month depending on the service level, professional or premium. The monthly retainer will increase as the number of clients using our Portfolios increases above 32 and 50, respectively. We will collect payment monthly by Direct Debit using the GoCardless payment system. Monthly invoices will be provided for their records.
Under the percentage AUM (Assets Under Management) option, Betafolio will collect fees directly from the client’s portfolio via the platform through which the Portfolios are administered.
An adviser can manually remove a client’s portfolio from the rebalancing process. For example, if the CGT allowance has been exhausted during a given tax year and rebalancing is due, the adviser can remove the portfolio from the rebalancing process and defer this until the start of the new tax year.
Yes. Betafolio will notify the adviser before rebalancing or switching funds in case it might create a CGT liability. It’s ultimately the responsibility of the advisory firm and client to decide whether to undergo any changes, so accepting the risk of a CGT liability, or alternatively whether to opt-out of the rebalancing process.
We work collaboratively with firms to manage portfolios on platforms, under Betafolio’s discretionary permission. Betafolio uses the following rebalancing strategies:
Risk-tolerance bands: the portfolio is rebalanced when pre-determined thresholds are breached by any asset classes within the portfolio
Rules-based: this approach involves altering the asset allocation based on a pre-defined set of criteria in order to achieve specific outcomes. These criteria must be rules based and supported by extensive empirical data. Common examples include the Rising Equity Glidepath and the Prime Harvesting Rule, specifically designed for drawdown portfolios.
Custody and tax wrappers are provided by the adviser’s platforms. Betafolio’s service is only available via advisory platforms.
The service is currently available on 7IM, Advance, Aegon, Ascentric, Aviva, Embark, Fidelity, Fundment, FusionWealth, Novia, Nucleus, P1, Quilter, Standard Life, Transact, True Potential and Wealthtime. We are currently working to add further platforms, please enquire if there is a specific platform you are interested in.
All portfolios will have a 2% allocation to cash. Drawdown portfolios can have a higher allocation to cash, but the cash account should be excluded from the rebalancing process.
Firms have the option to receive the full suite of services or alternatively a limited proportion via the modular service. This enables the firm to pay for only what it needs. Please contact us to discuss your requirements.
For tolerance-driven rebalancing, the cash account will be excluded from the rebalancing. This will leave the cash within the drawdown portfolio untouched.