Multi-manager proposition Selestia, opens for business this Monday. The service, aimed at the ...
Multi-manager proposition Selestia, opens for business this Monday. The service, aimed at the retail investment market, claims it allows IFAs to offer investors the sort of portfolio construction techniques hitherto only accessible to large institutions such as insurance companies and pension funds.
Selestia is accessible to the public through IFAs. It will initially offer around 140 funds from 23 leading fund managers including: ABN Amro, Deutsche, Artemis, CSFB, Schroders, Merrill Lynch, Baring and Invesco. It is available via the internet or through Selestia's business support staff at the company's head office. It is the first UK provider to have a collaborative venture with 'manager of managers' investment group, SEI Investments.
Brett Williams, Managing Director, said: "We believe that we have developed a proposition that really will revolutionise the whole way retail investment decisions are made and portfolios managed in the UK by providing state-of-the-art best practice portfolio construction techniques. It is time for a market-led, customer focussed provider, free of the legacy systems that have hamstrung the traditional product providers."
Bill Vasilieff, Marketing Director, added: "Selestia is bringing portfolio construction techniques traditionally used only in institutional markets to the retail sector. There have been a number of academic studies and it was also covered in the Myners report that asset allocation is key and accounts for more than 90% of the difference in fund performance between different funds. A lot more attention should be paid to that."
Selestia will initially offer ISAs, Pep Transfers, and collective investments. There is an initial charge of 5% of the investment or 1.25% of the investment each year for over five years. The annual management charge will operate on a sliding scale - the first £10,000 will be charged at 0.4%, the next £10,000 at 0.25%, the next £10,000 at 0.1%, and anything higher there is no annual management charge. The maximum annual charge is £75 plus VAT.
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