NatWest launches all-in-one funds
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.