Skandia's multi-manager range is to compete on price with the directly-invested sector, as part of the group's plan to continue aggressive negotiation with fund managers.
The firm is building a high-profile restricted offering under the Old Mutual brand, which includes a ‘Select' panel of eleven fund managers, as well as the Spectrum and Generation risk-rated portfolio of funds.
Portfolio manager John Ventre (pictured) said it aimed to hold the total expense ratios at around the price for a single fund.
Skandia and Old Mutual's size gave it a distinct cost advantage, he said: "It's scale but also doing some of the dirty jobs and negotiating really hard. It's amazing the discounts you can get if you ask. We always ask and sometimes pretty rudely.
"Our goal is to offer a solution that is close to being comparable with directly-invested. The Spectrum TER is around 180bps - higher than typical 150bps charge plus 20bps admin, but it's not a million miles away.
"We're trying to overcome double charging and advisers and customers see that. You are doing a bit more so it is always going to be a bit more expensive."
Ventre denied advisers interested in using the restricted proposition would be offered Spectrum or Generation at a discount to independent advisers.
"The business is obviously building a restricted proposition, because it is going to have some scale," he said. "There are enough advisers who ask whether independence is all it's cracked up to be. There will be decent size but quite what the balance is unclear.
"It's not our intention to offer it at different prices through different channels."
However, despite Select and the multi-manger offerings operating "completely independently" from each other, he refused to rule out the possibility Old Mutual's segregated mandates would form part of his portfolio.
"The selection processes are completely independent, but that doesn't mean we won't have some cross-over. It's not as simple as saying we won't use them, because the manager names haven't been made public. But I don't have to use anything in that range: there will be no pressure to do so."
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