View the article online at http://citywire.co.uk/wealth-manager/article/a732664
Skandia gets AMCs down to 0.52% for WealthSelect range
by Danielle Levy on Feb 06, 2014 at 14:09
Skandia has negotiated more competitive annual management charges (AMCs) than Hargreaves Lansdown across its soon-to-be launched WealthSelect range.
The range will form the basis of a discretionary managed portfolio service. Skandia said the average AMC of the funds within the WealthSelect proposition is 0.52%, with no additional charge for its managed portfolio service. The group hopes this will enable financial advisers to offer a range of portfolio management solutions to their clients at very attractive prices.
In comparison, Hargreaves Lansdown is to offer an average annual AMC of approximately 0.65% across its Wealth 150 range with the 27 funds selected from its Wealth 150+ list to have an average AMC of 0.54%.
Fidelity, with £48 billion of assets under administration on its platform, secured an average annual management charge (AMC) of 0.64% for funds on its Select List, which comprises approximately 140 products. Meanwhile, on its platform it secured prices as low as 0.2% for active funds.
The new WealthSelect fund range will comprise 42 single strategy funds that are run by Old Mutual Global Investors, which sits alongside Skandia as part of Old Mutual Wealth. Over half of these funds will be sub-advised by third party investment houses, such as Aberdeen, Artemis, Blackrock, Fidelity, Henderson, Invesco Perpetual, JP Morgan, Newton, Schroders and Threadneedle. The range will also include a selection of passive funds.
The managed portfolio service will enable advisers to offer clients a discretionary service without their clients incurring the additional costs of a discretionary fund manager.
The managed portfolios will be aligned to client risk levels 3 to 10 on Skandia’s platform risk-profiling scale (10 being highest risk), in order to meet a wide range of client profiles. The portfolios will be available through all products on the platform, spanning ISAs, pensions, bonds and unwrapped collectives and will be optimised to the tax wrappers as appropriate.
As part of the managed portfolio service, advisers can produce co-branded, client-specific portfolio reports on a quarterly basis. These reports will show portfolio held.
The managed portfolio service is optional and advisers can choose to manage their own portfolios using the WealthSelect range if they prefer.Strategies available as part of WealthSelect include Aberdeen Asia Pacific; Artemis Income; BlackRock UK Special Situation and Gold & General; Newton Global Higher Income; JPM Emerging Markets and Natural Resources; Schroder US Mid Cap; and Henderson Property.
Old Mutual will also offer Richard Buxton's UK Alpha strategy, alongside his colleagues' UK Equity, Mid Cap and Smaller Companies funds. Old Mutual's Corporate Bond, North American Equity and Property funds are also available as part of the range.
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