IG Group unveils robo advice offering with BlackRock partnership

The firm, better known for its online trading business, promises to have total fee transparency with its new IG Smart Portfolios.

IG Group unveils robo advice offering with BlackRock partnership

IG Group has launched a series of model investment portfolios with asset allocation passive funds provided by BlackRock.

The five risk-rated portfolios are constructed by IG and the ETF-based portfolios are rebalanced and continuously monitored by IG’s portfolio management team to respond to market conditions.

The company said they want to be upfront with consumers about any costs associated with their services and the underlying exchange traded funds [ETFS] from BlackRock giant iShares business.

“As we join the digital wealth management industry, we are keen to show that a low cost online service leads to greater consumer control and clarity, without compromising at all on quality,” said Ian Peacock, head of UK and Ireland at IG Group.

Research from the company shows that about 52 per cent of UK investors prefer to manage their investments online and 83 per cent say they could be persuaded to switch to an online platform in the future.

The firm’s five portfolios have no set-up, dealing, rebalancing or exit fees. Fees are divided into three structures- up to £50,000, between £50,000 and £250,000 and over £250,000. Charges for services vary from 0.10 per cent to 0.65 per cent. The ETF funds also have an average fee of 0.25 per cent.

The digital wealth management launch follows IG Group’s development of share dealing offering in 2014, and is part of a broader strategy to provide various investment products in the UK.

“The launch of IG Smart Portfolios is an important step in the development of our investments offering,” said Peter Hetherington, CEO of IG Group. “We see a huge opportunity in online investing, with strong demand from investors for online solutions and transparent fees.”