Dicretionary manager Thesis Asset Management has launched a range of model portfolios investing in direct securities.
Most discretionary model portfolios invest only in investment funds, but the new range from Thesis will combine investing in funds with investing directly in markets.
The risk-rated range of seven model portfolios will only be available directly from Thesis, at a minimum investment of £25,000, adding to the firm’s existing range of model portfolios that invest in both active and passive funds.
Thesis said the ability to invest directly in equities would lower costs compared to buying funds, which it estimated would bring a saving of 42 basis points on the highest risk mandate compared to the fund-buying active model portfolio.
However, the cost savings will diminish as investors move down the risk scale due to the decreasing use of equities in the more defensive model portfolios.
Lawrence Cook, director of marketing and business development at Thesis, said while the portfolios were only currently available directly from Thesis the firm was “exploring the potential for offering this new service through other wraps in future”.
