Investia is to offer a new fund platform called Javelin. The fund platform will allow brokers and int...
Investia, formed last year by Mark Collier and Ron Lay, both previously with Charles Schwab Europe, will provide banks, building societies, companies such as traditional supermarkets, brokers and intermediaries with a platform, known as Javelin, that enables them to offer direct client dealing of mutual funds.
Cost structures have yet to be finalised. However, intermediaries do have to buy Javelin, which is why the group is targeting adviser networks rather than individual intermediaries.
Investia is a business-to-business e-commerce company, backed in some part by a £3m investment from venture capitalists Villanova Capital. Its aim is to provide others with the capacity to offer their own fund supermarket without having to invest in the actual construction and development of new systems.
Javelin enables trading, clearing and settlement of mutual funds. Intermediaries and other potential buyers of the system can custom-build the supermarket by entering distribution agreements with various fund management groups themselves, thereby selecting the funds they feel are most appropriate or maintaining existing distribution relationships.
The web-based service, which would be branded with the organisation that purchases the platform, allows advisers to attract a direct market that may then want to make use of the advice service.
Customers can access a direct funds trading service through the intermediary, but the adviser is there if needed and can offer additional services such as monitoring the client's activities.
Through the system, an intermediary can produce a consolidation of all the client's holdings, percentage of cash, weightings in bonds, equities and in funds. The portfolio is updated daily through a price feed and changes such as the buying or selling of a fund are shown immediately.
Gareth Thompson, director of finance and administration at Investia, said: "The funds market is an intermediated market. Just because there are direct services does not mean that people will not want advice.
"The high net worth clients may be comfortable buying but the majority will need advice. This gives intermediaries a good service tool for face-to-face meetings. It offers an integrated view of the client's account and provides consolidated statements of the client's holdings."
Other features on the platform include integrated fund information provided by data providers such as Standard & Poor's Micropal. The group plans to offer its platform across Europe.
For more information view Investia's website on www.investia.com.
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