Escher UK has launched a new multi-manager service, The Escher Asset Management Service (Teams), tar...
Escher UK has launched a new multi-manager service, The Escher Asset Management Service (Teams), targeting smaller pension funds.
Escher UK is an investment house which was created in March when William M Mercer, one of the world's biggest pension fund advisers, sold its SuperFlex multi-manager service to the South African company, PSG Escher.
Teams is primarily aimed at pension funds under £100m. The group believes small to medium funds are often unable to take advantage of sophisticated investment strategies used by larger pension funds because of the costs of the management fees. Stuart Gordon, managing director of Escher UK, said: "We do not feel that fund size should preclude trustees from accessing the best investment structures."
Both active and passive funds will be available, and clients will be able to mix the two. There is a pre-packaged fund on offer, which is 50% passive and 50% active, but it is also possible for clients to choose any balance they wish. Baillie Gifford and GMO Wolley will run the active UK equity portion, Lazard and Dresdner RCM are to manage global equities, and Barclays Global Investors is the passive fund manager.
All administration has been outsourced to the Credit Suisse Group company, Winterthur Life. Gordon said: "Our single point of contact for administration will reduce administration burdens. Clients can get active and passive management from one source and adjusting balance in funds will be made easier."
Teams will have clearly defined fees which are all-inclusive and free of extra charges. The fees will range from 10 basis points for some passive funds to 95 basis points for the high performance overseas equity fund.
Targeting intermediary market
Represents £8trn in assets
Simplify and modernise
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