Skandia has reached agreement with eight asset manager groups on its low-cost fund range, which will initially be launched under the Select brand.
These are Aberdeen, BlackRock, BNY Mellon, Fidelity, Henderson, JP Morgan, Schroders and Threadneedle.
Money Marketing revealed that Old Mutual Global Investors will offer funds from up to 12 fund managers as part of its new low-cost fund range, due to launch next year.
In its half-year results, published in August, Old Mutual Wealth Management announced it is developing a low-cost fund range targeted at restricted advisers who want to build their own model portfolio service post-RDR.
The funds in the new range will be run as sub-advised retail mandates. M&G is unable to provide sub-advised retail mandate services. In light of this, Skandia has agreed that M&G will be a strategic partner and the two companies will work together to find a solution that will enable M&G to join the new fund range at some point in the future.
The new fund range of around 50 funds will cover all major asset classes and will be offered exclusively via Skandia. It will be available on the Skandia Investment Solutions platform in addition to Skandia’s existing open architecture range and its packaged solutions such as the Spectrum risk targeted funds and the new Generation income solutions.
Old Mutual Wealth chief executive Paul Feeney says: “This is a very exciting line up of high quality fund managers which will make this range of funds very attractive to all types of financial adviser post RDR. The funds will have very competitive charges, a clear example of how we are able to use our scale and market position to negotiate great deals for the advisers that work with us and their customers. This fund range, accessed via the Skandia platform, is likely to be the most compelling focused fund range anywhere in the market.”