16 Jun 2021

Nationwide expands investment offering to members launching new model portfolio investment

  • 33 funds available in the Model Portfolio, carefully selected by Nationwide’s investment experts
  • Those investing into Model Portfolio must put in at least £40,000
  • Model Portfolio will work to achieve higher returns than inflation and deposit accounts
  • Forms part of Society’s wider investment offering, which is offered via Aegon

With data showing an extra £180 billion being saved1 since the first lockdown and with nearly four in five (79%) Brits considering investing or already being an investor2, Nationwide Building Society expanded its investment offering on the 11 June by launching its Model Portfolio to members.

Model portfolios, which were previously only available to existing investors via Nationwide, are an actively managed group of funds designed to achieve an expected return with a corresponding risk3 accepted by the investor.

Its aim is to maximise returns for the customer based on their level of risk, and long term financial plans. While combatting inflation, which more than doubled in April from 0.7 percent to 1.5 percent4 and is causing increased discussion amongst investors and banking officials as potential rises are on the horizon. The Model Portfolio can offer a suitable alternative for those looking for a longer term investment, and the opportunity for higher returns than a standard deposit account.

Nationwide recently found that education and knowledge was a barrier to getting people into investing with a further quarter (25%) stating that they simply didn’t know where to start. However, the Society’s Model Portfolio must be recommended by one of Society’s Financial Planning Managers (FPMs) and are therefore not available online. However, for members who are looking for a straightforward, low cost investment solution and are happy to proceed without advice, Nationwide’s Primary Fund could be the best option and is available online with a minimum investment of £20.

The FPMs are available to help all members with their investment needs, whether it’s to grow their savings or to supplement an income. Appointments are held over the phone or via video call, which enables people to discuss their investment needs from the comfort of their own home, ensuring advice is provided in the safest way possible.

Nationwide’s team of investment experts scour the market to source the best funds they feel will meet members investment needs. Currently there are 33 funds that sit on Nationwide’s investment panel from which the Model Portfolio will be created. Nationwide’s experts undertake a rigorous selection process, that involves understanding the fund’s objectives, strategy and philosophy as well as analysis of the fund’s historic performance. These funds will be regularly monitored by Nationwide’s Investment Committee to check they perform as expected and to ensure the Society continues to offer its members the right products to help meet their needs.

 Those investing in the Model Portfolio can make either lump sum investments, regular payments or a combination of both, with a minimum entry amount of £40,000. The transparent charging approach, comprising of a 2.5% initial advice fee, an optional 0.75% ongoing Advice fee, (which customers can opt out of if they would prefer to manage the ongoing performance themselves) and a 0.39% platform charge, means customers know exactly where they stand and won’t be caught off guard. As with all funds there is also a fund charge associated with the chosen portfolio.

The Model Portfolio option forms part of Nationwide’s wider investment products offered via Aegon. Further details on the investment options offered by Nationwide can be found here.

Nationwide remains committed to building a stronger, kinder, greener building society being a responsible business is part of its mutual heritage. The model portfolio is one option from a range of different investment solutions Nationwide offers, which provide investors the opportunity to achieve higher returns than a standard deposit account and to invest in funds that reflect their personal risk, whilst maintaining risk reduction through the principle of diversification.

Notes to editors

The investment options Nationwide currently offers are provided through Aegon Applications are required for all products.  Further details of terms and conditions are available on request. Nationwide offers restricted advice.

1: Bank of England research - Financial Stability Report - December 2020 | Bank of England

2: Nationwide consumer research - Poll conducted online by OnePoll with 2,000 UK adults (nationally representative) between 23 February and 26 February 2021

3: smartasset.com/investing/model-portfolios

4: UK inflation rate more than doubles in April

The value of your investment can go down as well as up so you may get back less than you originally invested.