Threadneedle Investments is changing its distribution strat-egy to place more emphasis on links with...
Threadneedle Investments is changing its distribution strat-egy to place more emphasis on links with third-party businesses, writes Jane Wallace.
Rod Aldridge, head of London and Southeast clients, has been appointed as director of third-party sales to spearhead the new strategy. A replacement for his former position is being sought.
Threadneedle established links with Norwich Union last month and also has fund links with Skandia. It is a provider on Barclays Fund Exchange, a funds supermarket, and to international clients through Citibank. The new strategy results both from a need to make the investment business accessible to a wider audience, and also to play the trend towards multi-manager funds.
Guy Beech, sales director with the group, said: "The Threadneedle brand penetration has grown significantly over the past two years, not just among investment IFAs but also the broader IFA market.
"We want to maximise exposure to this latter group through third parties who can provide more appropriate wrappers.
"Now there is so much pressure on margins, third parties may not be able to afford particular product features. They can offer a range of investment managers to customers to increase choice, hence this key trend towards open architecture."
Aldridge's aim is to establish links with both traditional third-party distributors as well as new channels such as e-commerce banks like Egg and stockbrokers such as Schwab, and non-traditional channels such as those media companies planning unit trust dealing services.
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From 6 April 2019