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The investment manager, described as a discretionary service with a difference, will go live on 1 October with three funds: cautious, balanced and adventurous.

The cautious fund will be run by Sarasin & Partners, a Swiss bank. The balanced fund will be run by Schroders' Andrew Yeaddon, while the Adventurous fund will be run by Henderson's Bill McQuaker.

Roger Brosch, chief executive of Foster Denovo, said the launch had been designed so that there was more individual control over the investment managers and to have access to greater levels of reporting and visibility of the underlying holdings in each fund.

He said: "We also have a legal structure in place so we can remove those fund managers [that are not performing] and other institutions traditionally have not always honoured this.

"That enables us to deliver the core objectives. We can deliver consistency of performance for investment processes. Praemium smart funds give straight through visibility to the underlying holdings and you can see the decisions that have been made by the fund managers."

Alium Capital has spent the last 18 months choosing which fund management companies it would like to work with and these discussions are set to continue as the roll out of the proposition continues over the coming months.

Ronan Kearney, managing director of Allium Capital, said the service was very different to traditional discretionary management.

He said: "There are technical differences as we are essentially creating a personalised unit trust. It is possible to see through everything that is held and there is no need to worry about capital gains tax charges.

"Clients are not at the behest of a discretionary manager as we have global fund manager capability and that is an extremely strong benefit. The AMC on the fund is 0.85% and we consider that to be very competitive.

"The TER excluding any charges is 1.7 per cent. The cheapest if you wanted to buy a multi-manager would be Cazenove at 1.76 per cent."