Skerritt Consultants is turning five of the model portfolios it runs into mutual funds to make them available to other IFAs and the general public.
The Hove-based advice firm’s five model portfolios are comprised of exchange-traded funds, mutual funds and direct holdings, which the firm manages itself.
These model portfolios – the Alpha Plus, Growth, Balanced, Conservative and Income funds – represent a combined £450 million in assets.
Managing director Richard Skerritt (pictured) said he was targeting a further £200 million in assets once they are converted into mutual funds and opened up to other IFAs.
‘This is the obvious next step for us,’ he said. ‘Other advisers feel more comfortable using our funds than giving their clients’ money to the bigger discretionary fund managers [DFMs]. When they give their clients to the DFMs, they feel they treat them as their client and not the IFA’s client.’
By moving them into mutual funds, Skerritt explained the firm can now take on clients with much smaller amounts to invest, rather than requiring a minimum of £100,000.
The charge for the fund is 75 basis points, as well as a platform fee.