New boutique Tier One Capital is expanding its proposition with the launch of a cash management platform and structured product portfolio range.
The firm is to roll out its existing cash management service, called Cascade, through the launch of a platform for advisers and other intermediaries. The platform offers additional services, including a back office cash management service, daily tracking of cash rates and an optimisation process to pull together the best combination of cash accounts within parameters set by the client or adviser.
‘It is not a discretionary service because we deliberately veered away from that,’ said managing director and former Wealth Manager cover star Stephen Black (pictured left, with co-founder Ian McElroy) . ‘We wanted the security and the transparency of an advisory service instead.’
Cascade tracks the cash rates of 150-160 deposit takers and more than 700 individual accounts. Rates can be negotiated for larger deposits over £10 million.
The firm has also launched a range of discretionary structured products portfolios, which Black said diversify counterparty exposure for advisers.
‘You are increasing the quality of the type of structured products that the client will have access to and increasing the responsiveness,’ he said.
The range aims to deliver net returns of 6-9%, with a 1% initial fee and 0.5% management fee. Portfolios can be run on an advisory basis with a fee share for adviser clients. The boutique also offers performance-related fees.