An IFA-only investment fund supermarket will be launched this summer by Fedsure Investment Products,...
An IFA-only investment fund supermarket will be launched this summer by Fedsure Investment Products, offering trading abilities, as well as valuation services.
As first revealed by Investment Week last year, Fedsure plans to deliver a wider product range than the existing competition and lower charges for providers, intermediaries and consumers.
The supermarket is expected to comprise over 650 funds from providers across the board. In addition to being able to make lump sum and regular saving investments into unit trusts via the system, IFAs will be able to handle Pep transfers and purchase Isas, as well as pension products such as Self Invested Personal Pensions.
Fedsure's supermarket will build on the technology used to pioneer the development of a linked investment provider service in South Africa.
Francis Moore, managing director at Fedsure, said: "For the provider the system will offer an innovative, rapid, cost-effective distribution channel and for the IFA a powerful information and transactional tool."
Moore added the supermarket will be aimed at complementing the experience and knowledge of IFAs, at a time when the emergence of direct sales fund supermarkets are gaining interest from consumers.
Prudential's online investment arm, Egg, launched its own supermarket for direct sales of Isas and bases its sales on an online investor profile. Fidelity has also flagged its intention to enter the market.
Moore said: "If you look at what has happened in the US you will find that trading through intermediaries has risen to account for 70% of all transactions despite the presence of direct-sale products. People may have their heads turned by execution-only products initially but our research has shown that these are the IFA clients of the future."
IFAs will be able to log on to Fedsure's site and view their clients' portfolios and change asset allocations. Moore also believes the supermarket's competitive pricing and diversity of product will mean IFAs need only look in one place to transact clients' business.
Judging by their success in South Africa and the US, Moore said information supermarkets are "very much the future of financial advice."
The supermarket will launch in the summer, pending IMRO approval, and the company believes the cost-spreading nature of the product will help it achieve significant cost savings for providers, intermediaries and consumers.
Following the launch, a number of products will be phased in, including corporate pensions, stakeholder, offshore products, life bonds, discretionary portfolios, Pep transfers and electronic Isas.
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