Old Mutual Global Investors will offer funds from up to 12 fund managers as part of its new low-cost fund range, due to launch next year.
In its half-year results, published in August, Old Mutual Wealth Management announced it is developing a low-cost fund range targeted at restricted advisers who want to build their own model portfolio service post-RDR.
Skandia head of proposition Graham Bentley says Old Mutual Global Investors’ funds will be offered alongside funds from 10 to 12 other fund management groups. He says negotiations with fund managers are close to being agreed.
Money Marketing understands there will be around 60 funds on offer.
Bentley says all funds will be white-labelled under the Old Mutual brand, likely Old Mutual Global Investors, but will also maintain the fund manager’s brand so that investors can identify who is running the money.
He says: “We need to offer products from big brands that advisers respect.”
Bentley would not give full details of the platform charge for the service, but said it is likely to be 10 to 15 basis points cheaper than an open architecture offering.
Yellowtail Financial Planning managing director Dennis Hall says he expects clients will prefer passive funds if they are concerned about cost, rather than active funds.
Hall says: “A wide range of funds are being discounted through brokers already and there are tracker funds out there for cost-sensitive investors to buy.”