Paul Feeney has told Investment Week the terms negotiated on Skandia's soon-to-be-launched Select fund range will enable the group to offer the "best model portfolio service" to UK advisers and help them take power back from other distributors.
Feeney, the chief executive of Old Mutual Wealth, which owns platform giant Skandia, said the range can challenge many model portfolio propositions offered by discretionary wealth managers by taking them on in their own backyard at “prices they cannot match”.
The Select range is made up of about 50 funds from leading fund groups, including BlackRock and Aberdeen. While the line-up is not finalised, the range will see popular managers from the groups running versions of their existing portfolios on a sub-advised basis.
Feeney, who is spearheading Skandia’s conversion from one of the largest transactional platforms in the UK to a ‘wealth solutions provider’, said the Select range would offer advisers a means of providing a cost-effective discretionary service thanks to the rebates it has agreed with fund groups.
“A lot of advisers are providing their own model portfolios to clients at retail rates, either buying the funds themselves, through a packaged solution, or through private client discretionary managers.
“However, we can build it at a price advisers could not hope to match themselves, and that adds value for them and their businesses.”
Feeney (pictured) said the move will bring the group, and its advisers, head to head with the DFM market: “It will put us in competition, on our terms, with private client wealth managers.”
A number of other groups – in particular St James’s Place – have also claimed to have negotiated stellar terms with leading fund managers.
But Feeney said advisers who opt to use Skandia will not need to “sell out” to get decent terms.
“The only way for advisers to access St James’s Place’s terms is to go and join St James’s Place.
“If they want to sell out they can go and do it, but here we can offer the whole solution and enable advisers to keep their independence.”
Elsewhere, Feeney said the group – which has held talks with a number of adviser businesses about taking small stakes – is not trying to buy distribution.
He said any deals with adviser companies would be looked at on an economic basis. “We think some firms will really succeed so we are prepared in principal to help them, and then we get a stake in their success,” said Feeney.
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