City Financial’s Adviser Centre is set to launch its discretionary management service this summer after completing fund selection back-testing and signing up an offshore client.
The Adviser Centre will use the 107 funds it rates to create bespoke and model portfolios, a move investment director Peter Toogood described as a natural progression for the firm.
First pencilled in for late last year, the business is now looking at a summer 2016 launch following agreements to put the firm’s portfolios on to four platforms and the securing of a discretionary mandate from an offshore client.
Mr Toogood said: “We are currently in discussion with various parties with a view to establishing model portfolio and discretionary services. This is a logical extension for our work and the next leg of our business plan.
“We expect our first project to go live shortly, and this will be an offshore DFM service for one of our clients.
“We are also in discussion with platforms and selected intermediaries. We are well placed to offer services to help them create robust and suitable solutions for their customers.”
Mr Toogood said the onshore proposition would initially be targeted at advisers “who we have worked with in the past”.
The shift to the DFM model had been planned for some time and is seen as the profit-making arm of the Adviser Centre, which provides free research, fund ratings, commentary and analysis on the 107 funds under its remit.
Fees will vary but are expected to be in the region of 30 basis points.
Mr Toogood said the Adviser Centre’s recommended list was essential to “serve as its own panel of funds” to buy in the new service.
“The team has a huge amount of experience in model and portfolio advisory work, much of it while at Morningstar OBSR, where we were responsible for a wide range of portfolio services for adviser networks, wealth managers, platforms and insurance companies,” he added.
Mr Toogood, alongside Gill Hutchinson, head of investment research, launched the Adviser Centre in 2014 after joining City Financial from OBSR.