the group's multi-manager oeic to be run by external managers including JPMF and Merrills
Skandia is to offer segregated mandates from groups including JP Morgan Fleming, Merrill Lynch and Blackrock in its soon-to-be launched multi-manager Oeic.
The Oeic, which was first reported in Investment Week earlier this month, has received FSA approval for the launch. While it is set to expand in the coming months, initially it will have four sub-funds: Europe, Japan, US and fixed interest.
The European fund is to be managed by Blackrock, Albert Morillo's Edinburgh-based investment boutique, and ING, while the Japan fund will be managed by JP Morgan Fleming.
The US fund is to be managed by US-based firm MFS, which launched into the UK retail market late last year, while the fixed interest portfolio will be run by Merrill Lynch. The launch of the Oeic, which is to be called Skandia Multi-Manager Funds Limited, is scheduled for mid-April although the final date is yet to be finalised.
The European, US and Japan segregated portfolios will be available through Skandia's MultiFund, MultiPep and MultIsa products, however, the fixed interest portfolio will initially only be available as an Oeic investment.
Charges and intermediary commission for the four segregated portfolios have yet to be finalised although the minimum investment for the three available through MultiFund, MultiPep and MultIsa will be £500 lump sum.
The number of managers Skandia will use in each underlying portfolio will depend on the size of the assets in each sub-fund and will grow as funds are brought under management.
The Skandia product is modelled along the same lines as the recent product offering from US group SEI.
Selestia, the online fund supermarket that launched late last year in opposition to Skandia, offers eight of SEI's multi-manager Oeic sub-funds.
Phil Morse, investment brand manager at Skandia, said: 'This is a natural progression of our business model as we have been running these types of segregated portfolios for our life and pensions business since 1984 and this is an opportunity to extend it into the Pep and Isa sphere.'
In April, Selestia is to add the first two of a number of strategies. These are managed portfolios, with assets allocated between underlying SEI funds.
First to be made available is the UK strategy, investing in underlying SEI equity and fixed interest funds. This is to be followed by a global growth strategy. Use of strategies as a means of switching between underlying multi-manager, or fund of funds, is not a new concept and is already being offered to investors by Rothschilds, Credit Suisse and ABN Amro.
Investment Week understands that Skandia will add similar strategies at a later stage but initially only the Oeic sub-funds will be available to intermediaries.
Further groups are also set to make an entrance into the fund of funds market, for example Cazenove, a new entrant into the retail intermediary marketplace, is seeking to make its fund of funds capability available to retail investors.
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