Thesis Asset Management is launching a risk-graded range of model portfolios that invest in direct securities.
The Direct Securities Model (DSM) portfolios will sit alongside the company’s existing offering of active and passive model portfolios that invest in collectives.
Lawrence Cook, director of marketing and business development at Thesis, told Wealth Manager: ‘We want to achieve levels of diversification by allowing clients to invest directly into securities, not just unit trusts. The DSM [portfolios] are already gaining considerable interest and we hope to bring these to market towards the end of this year, aligned again to our seven risk profiles.’
Depending on the equity content and risk profile of each portfolio, Cook estimated the cost savings could be ‘considerable’, with between 15 to 20 basis points shaved off total expense ratios by avoiding the underlying fund managers’ charges. The minimum investment level is £25,000.
The DSM will be available directly through Thesis’s nominee services and the Ascentric platform, although Cook said the firm's directors (pictured) were looking at tie-ups with other platforms.
The firm moved to a single ‘cleaner’ and ‘simpler’ flat-fee structure in May, with the existing all-in charge cut from 1.5% to 1.2% for discretionary clients with portfolios of £150,000 upwards, and the option of a 0.75% annual fee plus brokerage costs removed.