Skandia parent company Old Mutual Wealth Management is developing a low-cost fund range targeted at restricted advisers who want to build their own model portfolio service post-RDR.
In a statement last week announcing its half-year results, Old Mutual says it is in discussions with a number of “high quality asset managers” to develop a new fund range for the post-RDR market.
It says: “The new fund range will cover all asset classes, be highly competitive on cost and will enable any financial adviser to design their own model portfolio service for their customers. It will be particularly attractive to restricted advisers post-RDR.”
The Old Mutual group includes the platform business Skandia UK, Skandia International, the merged businesses of Skandia Investment Group and Old Mutual Asset Managers UK and Skandia’s European subsidiaries.
Skerritt Consultants head of investments Andy Merricks says: “The RDR will lead to more of these products being developed so the key for firms will be differentiating their offering from the crowd. This mean they must have the right managers and costs in place.”
Hargreaves Lansdown investment analyst Rob Morgan says: “There will be more of these products post-RDR. The key will always be who can do these products at the cheapest level for investors, particularly if the products are vanilla.”