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IFAs &#39favour independent supermarkets&#39

Most IFAs would prefer to use an independent fund supermarket rather than one run by a single fund management company, according to research by Cofunds.

It claims its survey found around nine out of 10 advisers would favour an independent supermarket with multiple owners rather than one owned by a single company.

Eighty-four per cent of the 104 respondents also said they would prefer a supermarket which is dedicatedto intermediaries ratherthan “hybrid models” which have a competing direct distribution arm, such as Fidelity&#39s FundsNetwork.

The research was carried out by Matrix Data on behalf of the Cofunds venture, which is jointly owned by fundmanagers Gartmore, Jupiter, M&G and Threadneedle.

Cofunds says the findings suggest IFAs are concerned they may not be able to direct client relationships as effectively if they choose to entrust client data to a single fund management company.

The survey also revealed intermediaries are concer-ned with the security of online fund supermarkets, with assurance of client confidential-ity a key criteria for select-ing which market to use.

Cofunds chief Sam Jensen says: “This research further endorses Cofunds&#39 independent supermarket model. There is clearly huge concern among intermediaries about the hybrid fundmarket model, which also sells funds directat discount prices.

“This is an overwhelming vote of confidence for the independent model and there are clearly some fundamental benefits missing from thecurrent models.”

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