Four of the UK's biggest fund managers have combined 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.
The new firm, called Consolidated Funds Limited, will be run by an independent board, but funded by capital from the four providers.
The four founding companies opted out of Fidelity's supermarket, which launched this week, over fears joining would damage relationships with their clients. There were also concerns that joining the supermarket would lead to a loss of market share to Fidelity.
Perpetual were also in talks to take part in the joint venture, but pulled out after uncertainty over an imminent takeover.
The new company is to be run by Sam Jensen, who was previously involved in the establishment of Fidelity's FundsNetwork in the US.
Jensen says: “Over three-quarters of UK investors choose to receive some form of advice before making an investment. This new company will enable them to access new and better services without changing their existing adviser,” says Jensen. “We anticipate offering the widest range of investment funds available through UK intermediaries.”