Colonial First State is planning to introduce its 'master trust' product model, widely used in Austr...
Colonial First State is planning to introduce its 'master trust' product model, widely used in Australia, to the UK marketplace.
Reports of a supermarket launch by the group in FTadviser have been denied as a misunderstanding.
The company says its master trusts typically combine what in the UK are the distinct roles of product provider and IFA. The trusts come with dealing, administration and tax planning services and are based on a fund of funds structure.
Colonial is Australia's second largest fund manager with assets of £22bn under management, of which half is invested through master trusts.
The company is to adapt its FirstNet online transaction engine and portfolio administrator, already used in Australia, to the UK market, with a launch planned for the fourth quarter.
Cathy Hales, head of marketing and communications, said: "In Australia, it is possible to trade in funds and update portfolios online. Over there we manage supermarket-style offerings and fund of funds structures. IFAs can see client account details and valuations."
Advisers can add Colonial's products to their menus in a process similar to white-labelling, she explained. "Lots of IFA groups in Australia, called dealer groups, band together to create a supermarket of their own. We offer our funds on over a hundred different adviser supermarkets. The trust structure allows financial advisers to wrap together lots of products in one menu which the adviser can then badge as their own."
Mark Reed has been appointed as head of e-business and will manage development of the online initiative. Colonial First State is owned by the Commonwealth Bank of Australia.
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