The Falcon Group has rejec-ted the wrap route taken by most of its competitors and will instead launch two funds of funds to be run by Premier Asset Management.
Falcon head of investment solutions Piers Denne says he has spent a year invest-igating distribution options for the firm, including white-labelling provider wraps or using distributor-owned platforms.
But Denne says these options do not give the firm enough control over assets and it has decided to set up two of its own funds.
The funds, a growth fund and a distribution fund, will be run by Premier multi-manager heads David Hambidge and Aidan Kearney.
The funds will be overseen by a committee of Falcon members, with Denne init-ially acting as chairman. Denne says Falcon aims to have £20m a year running into the two funds from its advisers.
He says the move mimics firms such as Cavendish Grant, Buckles and The Fry Group but he believes Falcon is the biggest adviser firm to go down this route.
Denne says: “This gives Falcon the optimum amount of control over assets and the best-value proposition for the group.”