The support services provider has added two ranges of model portfolios to its asset allocation service but is considering turning them into Oeics, provided the five portfolios in each range reach £20m assets under management per portfolio.
Threesixty partner David Ingham says: “We have gone with £20m because we feel when we launch it needs to be with a really competitive TER. We do not want to be launching something that looks and feels like a distributor-influenced fund and has high charges, which most of them do at the moment.
“Most of the white-labelled in-house Oeics that have been launched have been done with a minimum of £5m or thereabouts, meaning the charges are quite high in the early years, particularly if it does not take off.”
Wrap consultant Stan Kirk says: “Various distributors are starting their own Oeics because it is a more efficient way of managing a client’s money, and it also means they get a profit margin out of the Oeic as well.”