A discretionary fund manager born out of a Chartered Financial Planning firm claims that five new passive portfolios it is launching today are the “cheapest in the UK”.

P1 Investment Management, which describes itself as adviser-led, said each portfolio has a charge of 0.1%, plus average underlying fund costs of just 0.09%, a total charge of 0.19%.

The asset allocation will be based on P1’s hybrid model portfolios.

The company was spun out of Chartered Financial Planning firm Prydis Wealth and launched in 2016. It has been operating and running discretionary portfolios since 2012.

James Priday Chartered MCSI, managing director of P1 Investment Management, based in Exeter, said: “Our hybrid model portfolios have been running for five years.

“We have back-tested the passive portfolio performance according to our asset allocation at the equivalent risk levels over the five year period and we are extremely happy with their positioning. At an all-in cost of 0.19% we believe they are the cheapest passive portfolios on the market.”

Mr Priday, also director at Prydis Wealth, said the new passive portfolios offer five different risk levels. They have been put together and will be run by P1’s head of portfolio management Will Dickson and investment analyst, Adrian Margrie, supported by Mr Priday and head of research, Dr Quintin Rayer.

Mr Priday said: “The industry needs more low cost options to make investment more accessible and affordable, so we are really excited about the launch of our new portfolios.”