Verbatim drops TCF for Architas in bid to lower costs

Verbatim drops TCF for Architas in bid to lower costs

TCF Fund Managers, the boutique set up by fund fee transparency campaigner David Norman in 2009, has been dealt a blow after Verbatim Asset Management switched management of the £83m Total Clarity fund range to rival Architas in a bid to lower costs.

The deal leaves TCF with two other offerings: its passive-focused service, TCF Investment, and the discretionary Multi-Asset Portfolio Solutions (Maps) offering. Assets under management in its remaining businesses are not disclosed by the company, which was unavailable for comment.

Despite TCF’s attempt to offer lower-cost investments through the use of passives, the Total Clarity fund OCFs have previously attracted criticism. Verbatim said it had moved the portfolios to Architas because it believed the firm was better placed to use its scale to lower charges on the range.

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“Costs are a significant factor in investment management and [we] believe the reduction in dealing costs and investment management fees is vitally important,” added James Gardner of Way, the current authorised corporate director of the fund.

The range consists of four risk-rated portfolios invested entirely in passive strategies. The portfolios are rated from three to six using Distribution Technology rankings, with equity holdings ranging from 24 per cent to 71 per cent.

Architas senior investment manager Steve Allen, in charge of the firm’s existing £991m seven-strong range of passive strategies, has now taken over management of the Total Clarity range.