IFA/Wealth Manager builds Passive (indexed) portfolios for clients - Does it exist?

Nachmani47

I'm an expat and am looking to build a portfolio of indexed funds (ETFs). I have opened an account at TD Direct Investing and am wondering if anyone can recommend any IFAs/Wealth Managers who can assist in setting up my portfolio and meeting once a year or so to balance/advise on how best to proceed.

Although I am an expat - I do travel to the UK regularly. Any ideas?

bigfreddiel

Nachmani47 wrote: »

I'm an expat and am looking to build a portfolio of indexed funds (ETFs). I have opened an account at TD Direct Investing and am wondering if anyone can recommend any IFAs/Wealth Managers who can assist in setting up my portfolio and meeting once a year or so to balance/advise on how best to proceed.

Although I am an expat - I do travel to the UK regularly. Any ideas?

This is so simple you can do it yourself.

Determine your risk profile and blend equity with bonds to equal it.

How do you determine your appetite for risk? Ask yourself how would you feel if you lost 50% in one year! Could you handle it?

Then find the lowest cost etf's to build your portfolio. No more than 4 etf's will do. This may seem too simple but any additional etf's won't add anything other than expense. It's human nature to think a portfolio of 10+ etf's must be better than just 2 or 3 but thsts just an illusion.

If I suggested four etf's would you pay me as much as a.n.other ifa who built you a portfolio with 10 etf's?

To find suitable etf's just do a bit of research on the numerous finance sites, telegraph.co.uk is as good as any.

Cheers fj

westy22

Have a look at http://monevator.com/etf-only-portfolios/ for some good ideas for constructing an ETF portfolio

TheTracker

Read literature like Tim Hale's Smart Investing, or All About Asset Allocation, and choose a typical allocation for your risk profile, age, and other circumstances.
Select low fee funds in line with http://monevator.com/low-cost-index-trackers/
You've just saved yourself a packet from an IFA who would do similar if you're lucky, and lobby for actives if you're not.
Or go from a wrapped up product like Vanguard LifeStrategy if you are too busy, and from the fact you want to pay someone to rebalance for you it certainly sounds like that is the case.
http://monevator.com/vanguard-lifestrategy/

dunstonh

You've just saved yourself a packet from an IFA who would do similar if you're lucky, and lobby for actives if you're not.

An IFA would build the portfolio to match risk profile and is required to have carried out due diligence on the investments. If that due diligence fails then there is consumer protection in place. That is what you are paying for.

An IFA would likely be unbiased towards use of managed or passives. Whereas you are biased towards passives.

I am not saying the OP should not DIY. However, if an IFA was to do what you have told them in the space of a few lines it would be classed a mis-sale.

Rollinghome

Nachmani47 wrote: »

IFA/Wealth Manager builds Passive (indexed) portfolios for clients - Does it exist?

Since the banning of sales commission paid by the fund managers there are a number of IFAs very much inclined towards passive investment. Best known is perhaps Stuart Fowler of Fowler Drew http://www.fowlerdrew.co.uk/why-we-are-different/

He wrote a highly polemic book, published by FT, about what he considers to be the dishonesty of actively managed funds and the investment industry in general. http://www.amazon.co.uk/No-Monkey-Business-What-Investors/dp/0273656589/ref=sr_1_1?s=books&ie=UTF8&qid=1435222861&sr=1-1&keywords=no+monkey+business

Whether it's worth using them or any other adviser solely for recommending passive funds is another question and being based in Fulham, close to Chelsea Harbour, I wouldn't expect them to be cheap.

An alternative approach would be to consider fund of funds that use passives such as Vanguard Lifestyle or those offered by 7IM (founded by Justin Urquhart Stewart, he of the red braces).

Sobryma

Nutmeg do offer a set of managed ETF models but you need to move to their platform.

Alternatively you can design your own portfolio here:

https://www.justetf.com/uk/etf-strategy-builder.html