Mentel says the group is seeing inflows of between £0.5m and £1.5m a day across the Omnis advanced, balanced and active funds, much of which he attributes to keeping cost under control.
He says: “One of the big problems with multi-mana- ger is associated with cost, with the average total expense ratio in the region of 3 per cent. Ours is 2.34 per cent and we feel that coupled with a strong distribution partner, it makes for an attractive proposition.”
Omnis was formed as an investment joint venture through the partnership of Octopus and Openwork.
The multi-manager pro-ducts marked the initial offering for Openwork’s 2,600 multi-tie advisers, with further products set to follow.
Mentel says he is surprised at the even spread of assets in the funds, with balanced holding £13.3m and advanced and cautious holding £8.4m and £8.6m respectively.
He says: “We were expecting the bulk to fall into the cautious sector but that is down to the diverse investor base. We are confident that these products are scalable into billions of pounds.”
Mentel says the core/satelite approach has served Omnis well and that all its choices have so far proved fruitful.
He says: “There have been no changes to this point alth- ough the potential deal bet- ween HBOS and Lloyds TSB could see us look at our holding with Insight where we hold a corporate bond fund.
“This is only the starting point and we hope to do so much more in the multi-manager space.”