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SimplyBiz's Verbatim signs up 15 firms

by Rachael Revesz on Nov 26, 2012 at 09:53

SimplyBiz's Verbatim signs up 15 firms

Verbatim Asset Management has signed up its first 15 firms to its discretionary fund management service.

SimplyBiz Group launched the Verbatim discretionary service in May this year. Portfolios are run by fund managers James Hambro & Partners, Henderson Rowe, Smith & Williamson and TCF Investment.

The 24 risk-rated portfolios have no minimum investment limit and are run on a continuous basis, costing less than 1% including administration and VAT. There is a low cost passive option priced at 0.84%.

Neil Stevens (pictured), managing director of Verbatim Asset Management, said the proposition would help advisers to deliver a high quality service to clients.

‘Advisers using Verbatim Discretionary will find they retain total control of the client relationship, have unprecedented transparency of costs and can be confident of the ongoing suitability as they control the portfolio mandate for their clients,’ he said.

‘Our handpicked team of discretionary managers will deliver quality portfolio management while ensuring the adviser is always central to the performance monitoring, reporting and client reviews.’

5 comments so far. Why not have your say?

Paul Barnard

Nov 26, 2012 at 10:30

I'd love to see the results of the back-testing that they must have done to see what effect that 0.16% p.a. reduction has made on passives v active over a 3,5 and 10 year period.

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Stephen Ng

Nov 26, 2012 at 11:01


Why dont you ask Neil Stevens for the data? I met him for the first time a few weeks ago and couldn't help but be impressed by his determination and passion to make things better and as easy for us to use. (No, before you say so, we havent signed up and are not one of the 15). It would be interestng to see his feedback.

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Neil Stevens (SimplyBiz)

Nov 26, 2012 at 11:39

For a £100,000 portfolio at risk level 5 an active fund based portfolio works out TER equiv of 1.19% including management costs, trading into the portofolio (£158 trading costs - 0.16%) underlying (£65.52pa) & custody costs and the platform itself. Passive option is 0.94% hence 25bps TER differential.

(Obvioulsy higher portfolio sizes amortise £costs to lower %s)

Please remember all pricing includes a full platform service that has been built for us by Winterfloods.

Send me your email address to n.stevens@simplybiz.co.uk and I'll send the full portfolio breakdowns which included all costs (TER equivalent approach). Verbatim is about 'telling it like it is'!

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Paul Barnard

Nov 26, 2012 at 13:56

I'm not disputing the costs, I was asking what your back testing told you about active v passive, that was all. So you haven't exactly told me how it is at all, really.

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Nov 26, 2012 at 22:51

What an utterly non-sense, to express risk by using standard deviation. It is an invite to free lunch, to use investment which don't have a high standard deviation but can add liquidity risk, counteparty risk, default risk etc. It looks to me people are still relying on the deceased MPT. That theory died 5 years ago, after it was sick from 1999 with the failure of the LTCM.

Shall I remeber them that LTCM died because of a change in the liquidity on US bonds.

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