Former portfolio manager at Barclays Karan Shanmugarajah has launched a 'no-win no-fee' digital wealth service.
WealthSmart aims to preserve the initial monies invested while generating growth with profits over the long term. To achieve this, the portfolio starts by being invested in lower growth/risk products. As it grows, the proceeds are used to slowly shift the investments into higher growth/risk products. As the portfolio matures and becomes more profitable, the proportion of higher growth/risk products increases.
Additionally, the portfolio incorporates a climate ‘tilt’ to the the overall holdings of the products it invests in. This means having greater exposure to companies that are likely to benefit from the transition to a low-carbon economy.
WealthSmart charges a one percent management fee if investments reach their targets. The service estimates a 3.1 percent return per year over three years.
The minimum investment is £100, with investments and cash held in custody by Winterflood Securities, part of Close Brothers Group.
The service will invest in a combination of index funds, exchange traded funds and actively managed funds.
Mr Shanmugarajah spent over five years at Barclays Wealth and Investment Management and oversaw $500 million in client assets. He left to launch WealthKernel, a provider automated wealth management solutions to institutional clients.