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Fund firms unite with supermart to challenge Fidelity

Four of the UK&#39s major fund providers which shunned Fidelity&#39s

FundsNetwork are combining to create a new independent fund supermarket

company.

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&#39s 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&#39s 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.&#39

Comment, p35;

Investment, p30

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