Premier Asset Management is to launch a discretionary portfolio management service towards the end o...
Premier Asset Management is to launch a discretionary portfolio management service towards the end of August, writes David Griffiths.
The package, called x-cel, will sit alongside the company's existing portfolio management service, c-lect, but is aimed primarily at Sipp investors.
It will be marketed as a bespoke investment strategy for individuals with £150,000 and above to invest and can be adapted for both growth and yield purposes. All portfolios will be managed on an individual basis. Client money will be invested in a range of unit trusts, Oeics, investment trusts, bonds and offshore funds as well as individual equities.
This service will be marketed exclusively through intermediaries and will offer initial commission of up to 3% and trail of 0.75%.
The annual management charge will be 1.5% from which trail will be paid. The client's investment priorities will continue to be determined by the intermediary, but actual execution of those priorities will be the responsibility of the Premier investment management team.
Mike O'Shea, joint managing director at Premier said: 'The intermediaries will no longer have to be responsible for stock-picking but is also safe in the knowledge that we will not be cross-selling any products to their clients. We will be working very closely with intermediaries at every stage of the process.'
In order to show how the portfolio construction strategy will work, the group has used a model portfolio based loosely on the Apcims growth model, managed by Premier since September 1999. For example, a fund of £173,000, invested in September 1999 would as at 31 May 2001 be worth £184,502, according to Premier figures. Overseas holdings would include 5.31% exposure to the Framlington American unit trust and 3.98% in Edinburgh's North American fund. Some 6.24% would be invested in Gartmore's European Select Opportunities, 5.99% in the Martin Currie European Trust and 4.13% in the Templeton Emerging Markets Trust.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till