Asset consolidation service Ascentric, led by former Cofunds chief executive Clive Boothman, has bought web-based supermarket Fundsdirect from Egg with the aim of providing a full wrap offering to advisers.
Fundsdirect, which was set up in 1999, currently offers 1,500 funds from 80 managers but has been focused primarily on direct consumer sales.
Ascentric is to expand this range by adding in direct equities, bonds and investment trusts to the mutual fund range.
It will also refocus its work towards intermediaries, under its own brand, although it is likely that the consumer sales will remain under the Fundsdirect label.
Boothman, chairman of Ascentric, and managing director Hugo Thorman, who previously worked for Abbey and James Hay, are also intending to offer Pep, Isa and Sipp wrappers as well as investment bonds and offshore bonds.
Ascentric is to be 50% owned by intermediaries with the remainder in the hands of management and an unnamed financial backer.
Founding intermediaries, of which the group is hoping to attract a total of eight, will automatically own 1% of the company with an unlimited number of additional firms being given a holding in proportion to the assets they bring to the service.
Currently Money Wise Independent Financial Advisers, Kings Court Financial Planning, Grosvenor Consultancy, Avidus Wealth Management and Vintage Financial have signed as founders.
Managers aim to bring in £1bn of assets in the next two and a half years and £4bn by 2010.
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created