NatWest launches all-in-one funds

The Daily Telegraph - Your Money - - YOUR MONEY - Laura Suter

NatWest has be­come the lat­est bank to of­fer low-cost, all-in-one funds.

The high­street bank will launch the NatWest In­vest ser­vice on Fe­bru­ary 20. It is avail­able only to NatWest cus­tomers.

The ser­vice will of­fer a range of five funds, each with a dif­fer­ent por­tion in stocks, bonds and cash. The low­est risk fund will have at least 70pc in bonds, with the rest in stocks and cash, while the high­est risk fund will have at least 90pc in shares. How­ever, the in­vest­ment man­age­ment team be­hind the funds will de­cide the split, and which coun­tries’ stock mar­kets to in­vest in. Coutts & Co will run the in­vest­ment man­age­ment of the funds.

Like the Van­guard funds, the NatWest of­fer­ings will in­vest in low­cost “pas­sive” strate­gies to ac­cess the mar­kets.

How­ever, charges are con­sid­er­ably higher than for Van­guard and other ri­val funds.

In­vestors will pay 0.95pc on the first £500,000 they in­vest and then 0.7pc on any in­vest­ments above that amount.

For any­one in­vest­ing up to £500,000, this is more than quadru­ple the cost of the Van­guard LifeS­trat­egy funds.

The NatWest ser­vice al­lows in­vestors to pay in a min­i­mum of £500 each month, and they can then se­lect the fund that most fits their risk tol­er­ance. Cus­tomers can view their in­vest­ments via the provider’s on­line bank­ing sys­tem.

As with the other of­fer­ings, no ad­vice is of­fered. Natwest is plan­ning to launch a “roboad­vice” ser­vice later this year. This will use tech­nol­ogy to pro­vide in­vestors with ad­vice, at a lower cost than face-to-face ser­vices.

In De­cem­ber last year, Bar­clays launched an in­vest­ment ser­vice. Ini­tially avail­able only to Bar­clays cus­tomers, it plans to roll it out to ev­ery­one later this year.

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