National IFA firm Bates Investment Services is to take on a multi-manager strategy by the end of the...
National IFA firm Bates Investment Services is to take on a multi-manager strategy by the end of the year.
The group, headed by chairman Graham Bates, believes it will be able to accumulate £100m in multi-manager assets within two years.
The intermediary firm, which employs 50 advisers, has been in talks with a number of possible providers, including SEI, Frank Russell, Axa and Insinger de Beaufort. It foresees some 50% of future business going into core manager of manager funds in the life, pensions and investment business on which it advises.
This decision has been prompted, in part, by the lower cost of manager of manager products when compared to funds of funds.
James Dalby, head of the six-strong research department at Bates, said: 'Manager of managers gives an institutional quality product.
'The pricing is like a single manager fund, with each having a TER of around 2%. The cost is not the issue it once was and, increasingly, it is a non-issue.'
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