Four of the UK's major fund providers which shunned Fidelity's
FundsNetwork are combining to create a new independent fund supermarket
Jupiter, Gartmore, Threadneedle and M&G have each invested £5m to
create a new IFA-based supermarket, to be launched in November.
Perpetual was also in talks to take part in the venture but pulled out
after uncertainty over an imminent takeover.
The venture, called Consolidated Funds, will be run by an independent
board but funded by capital from the four major providers.
The new supermarket, revealed exclusively in Money Marketing last week,
will offer the same white labelling deal as Fidelity, allowing IFAs to
brand the platform as their own.
Chase de Vere, Best Investment, Torquil Clark and Hargreaves Lansdown have
signed letters of intent to enter into a white labelling deal with Fidelity
but all four have said they would consider switching to Consolidated when
it goes online in November.
The four founding companies opted out of Fidelity's supermarket, which
started last week, over fears that joining would damage relationships with
clients. There were also concerns that joining the supermarket would lead
to a loss of market share to Fidelity.
However, at its launch at the PIMS Conference last week, Consolidated
extended an open-ended invitation for Fidelity and its fund providers to
join its supermarket.
The new company will be run by Sam Jensen, who was involved in the
establishment of Fidelity's FundsNetwork in the US. He says: “This new
company will enable investors to access new and better services without
changing their existing adviser. We anticipate offering the widest range of
investment funds available.'