Canada Life Investments is launching five fettered multi-manager funds in August, subject to regulatory approval.
The new funds will be constructed from Bill Harer and Michael Count’s £189m CF Canlife Corporate Bond fund and Mike Willan’s £132m CF Canlife North American fund, among others.
The fund-of-funds range will also invest in portfolios managed by the firm’s parent company, Great-West Life.
A Canada Life Investments spokesman says: “Our aim from the outset was to design a competitively priced proposition by investing primarily into the Canada Life Investments fund range, accessing the least expensive share class available. Investors can expect the fund’s ongoing charges to be below the typical unfettered offering.”
Philippa Gee Wealth Management managing director Philippa Gee says: “It is fine to have more competition in the space but is it something we will sit up and listen to right away? No.
“Canada Life Investments will need something special to make IFAs consider it. This is the year when we will certainly see more mergers so it is unusual to have new entrants to the market.”
Hargreaves Landsown senior investment manager Adrian Lowcock welcomes the addition of this offering to the market. Lowcock says: “I think it will be a good thing for clients in the longer term. With a company like this which is a new entry it shows the opportunities that are out there post-RDR. It is a proliferation of what is available.”
However Charles Stanley head of investment research Ben Yearsley is sceptical of fettered offerings. Yearsley says: ”I cannot see the point of fettered funds. You might as well go down the unfettered space where there are a lot of quality managers. I can see the logic behind the costs but price does not equal quality.”