The rain has stopped, the sun is shining and it feels as though we’ve got through the worst of the weather. It’s half term so half of the industry is away and so it’s been a quietish week. We Fundscapers were bogged down in our various quarterly/year-end reports until Old Mutual gave us something to think about.
The group announced its new solution two weeks ago, but it was only today that it published the details of the WealthSelect fund range and the AMCs. There are 20 sub-advised funds from 10 fund managers. Being a bit of a nerd, I added up them up and worked out that the average was 58bps and not 52bps, so I can only assume that Old Mutual funds have also been included in the 52 bps calculation.
In theory, everyone’s a winner. Advisers get access to a balanced fund range at cheaper prices. Check. Fund managers get distribution in exchange for lower AMCs. Check. Old Mutual can use fund revenues to offset platform costs. Check.