Quilter Investors is set to offer lower fees to early investors in its new income range.
The range is due to be launched on 26 June, the manager confirmed today, with a discounted “founder” share class at a fixed ongoing charge of 0.6 per cent for the first six months.
The share class will be available on the Old Mutual Wealth platform, and will continue indefinitely for future regular savings and phased investments as long as investments are made in the first six months.
The founder class represents a 25 basis point discount on the standard FOC of 0.85 per cent that will apply on any investments instructed after the six-month period ends.
Quilter Investors has also confirmed the structure of the range, which will be split into two portfolios, a lower-risk, higher-income Monthly Income Portfolio, and a higher-risk, lower-income Monthly Income and Growth Portfolio.
Both will have a risk-targeting approach, using an income smoothing strategy to distribute payments monthly.
Portfolio manager Helen Bradshaw, who Quilter hired from Janus Henderson last year to launch the range, says: “Identifying sources of income has grown increasingly complex in recent years, with a variety of factors making the search for yield more and more challenging. Utilising a diverse investment toolkit we will be aiming to produce a reliable, first quartile yield, while recognising the need for investment discipline and resisting the temptation to overreach through our risk-targeted approach.”
Quilter Investors was formed after the split of Old Mutual Wealth from its South African parent last year. Richard Buxton, former Old Mutual Global Investors star manager, took the single strategy part of the firm to set up his own fund management business, with the remainder of OMGI rebranded as Quilter Investors.