FTAdviser.com

Advertising

Praemium offers IFAs the opportunity to create their own fund ranges, drawing on the expertise of established managers from big-name and boutique houses.

The SO Smartfund is structured as a unit trust. Any number can be created by advisers wanting to give their customers a choice of risk profiles, asset classes or style blends.

Rather than appointing a fund manager, Praemium approaches firms with a view to buying the rights to access the live portfolios of their most popular managers. Different managers' stock picks and macroeconomic strategies are then blended into the SO Smartfund.

IFAs can either choose to track the portfolio changes of a selection of managers, or take their pick from the portfolios on a more independent basis.

Trading costs are reduced through a single omnibus account which sits underneath all Praemium's bespoke unit trusts and which conducts all dealing in securities and mutual funds.

John Martin, sales director at Praemium, said the single layer of custody charges on the SO Smartfund made it more cost-efficient than using funds of funds or portfolios of single managers.

He said: "At the extreme end, a client can pay the double layer of fees for a fund of funds, and then the platform has custody costs. The SO Smartfund has reporting of performance and capital gains tax calculation like a platform would, so you get the benefits with only one layer of custody charging."

He added: "The view the client gets is much greater. You can see things down to the direct equities level, so it is a very rich investment experience."

Praemium has already signed up several IFA firms to the service, and is in negotiation with a range of fund providers. Mr Martin said he expected to launch the first raft of bespoke funds in three months.