Skandia has signed an exclusive deal with New Star Asset Management to
provide fund links to its life and pension products until next April.
It will also give Skandia exclusive rights to stock New Star's funds on
its MultiFund supermarket until next year. It will be the first time that
Skandia has linked to a product provider from launch.
The news comes as Skandia relaunches its fund supermarket, slashing
charges and increasing IFA commission.
From June 1, Skandia's annual fee of 0.75 per cent, which is payable on
top of each fund's annual charge, will be waived for all clients with
assets of more than £10,000 in the supermarket. Under £10,000,
the charge will be cut to 0.5 per cent. The charge will be waived for the
first year of all Isa investments.
Commission is increased from 3 per cent to 3.5 per cent for all IFAs
dealing online. Skandia does around 12 per cent of its business online but
says it hopes to increase this to 20 per cent by next year.
Skandia is also developing a web version of its fund selection package,
U-select, which will go live this year.
Commenting on the New Star deal, Skandia investment brand manager Phil
Morse says: “The things we look out for when linking to a group, are who
runs it, who owns it, who is going to be selling it and how the funds are
managed. It is unlikely that a new manager will fill all our requirements
but New Star is unique. There has not been a retail launch like this