Transact adds Blackrock MPS

Adviser platform Transact has added a Blackrock-run model portfolio service (MPS) to extend its choice of discretionary investment managers. This is the first time Blackrock will manage an MPS range on the platform. The Transact - BlackRock MPS range will consist of seven discretionary risk managed model portfolios with varying volatility and asset allocation ranges comprised of index mutual funds, exchange traded funds (ETFs) and cash. There will be a target allocation of between 60-80% in iShares index mutual funds and ETFs (managed by BlackRock) and up to 40% index products from other asset managers. Transact said the use of low-cost index products within the MPS facilitates a competitive pricing structure. The portfolios will be managed by Blackrock’s multi-asset strategies and solutions team. Jonathan Gunby, CEO at Transact, said: “Advisers have told us that third-party DIMs help to reduce cost and risk in their businesses, whilst allowing them to spend more time with clients. Hence we saw an opportunity to offer an additional DIM service offering value for money via BlackRock, recognised by clients and one of the world's largest discretionary managers and leading risk managers.” Transact has yet to reveal the pricing for the new portfolios. The launch of the new portfolios comes just a day after Transact’s parent company Integrafin said that a second review of its ongoing VAT battle with HMRC has ruled in favor of the taxman. A review by HMRC had led to the decision to exclude one of Integrafin’s companies from the UK VAT group. The VAT is related to internal charging mechanisms within the Integrafin group and is expected to have no bearing on adviser or client fees. The company was first hit with an unexpected £4.3m VAT bill in January 2020. Whilst Integrafin intends to appeal HMRC’s decision to the first-tier tribunal, it said that it is required to pay HMRC the VAT that has been assessed as being due since 4 July 2016 in the meantime. The VAT due for the period 4 July 2016 to 30 September 2021 is £8.0m. The VAT due for the financial year ending 30 September 2022 is £1.8m. Integrafin said the payment to HMRC of VAT due will come from group cash reserves, of which £51.6m have not been allocated elsewhere. The parent company of adviser platform Transact said it also expects there to be an ongoing VAT liability for around £2.4m for the financial year ending 30 September 2023. If Integrafin’s appeal against HMRC is successful, all VAT payments above will be repaid with interest.

Transact adds Blackrock MPS

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