Tenet Group is launching a fund management arm next April and there are plans to offer advisers a profit share in the business.
Tenet unveiled the firm, which will be called Sinfonia, at its Edinburgh conference last week and said it will offer a range of five or six multi-manager funds at launch.
Chief executive Simon Hudson said that if Tenet floats or sells the business, advisers will receive a proportion of shares directly in relation to the amount of assets they have invested in the funds.
Until then, advisers will also receive a fee for the on-going service they undertake on the funds.
Sinfonia Asset Management is to be headed by Craig Knight, who joined the firm last week from Thesis Asset Management as managing director.
Sinfonia will outsource the management and administration of the funds to an unnamed internationally known fund manager.
The initial funds will offer advisers a range of different risk profiles and further launches are expected as the business builds.
Knight says: “We hope initially to run growth and income-related portfolios and will launch further products in accordance with market demand.”
Hudson said the size of Tenet’s client base and its £15bn of assets under influence made launching an investment company a logical step for the firm.
He said: “What we are looking to do here is offer Oeic multi-manager structures that are consistently monitored and have competitive and transparent pricing. These will offer an end support framework to the IFA and their client while reducing risk within their business.
“We feel this sits in well with the retail distribution review by offering greater transparency and distribution for the industry. The offering will have Isa capability and a Sipp wrapper and we hope to add it across a number of wraps and platforms as soon as possible.”