Sanlam Private Wealth has launched three funds which are designed to enable smaller clients to access the directly invested best ideas proposition it offers to its affluent customers.
The IFSL Sanlam Cautious, Balanced and Growth funds will be run by Phil Smeaton (pictured), the firm’s chief investment officer. They will levy an annual management charge (AMC) of 0.75% with the ongoing charges figure (OCF) capped at 0.79%.
A number of the firm’s smaller discretionary private clients are being moved into the suite of products. It will be a core offering for the company’s financial planning arm.
Sanlam Private Wealth head of portfolio management Charlie Parker said the advantage of investing directly is the removal of third-party fund charges, enabling the firm to offer competitive pricing.
While equities and bonds are easy to buy directly, more esoteric asset classes, such as commercial property, can be accessed through the in-house Sanlam Four Multi Strategy fund, with the underlying fee rebated.
Parker said: ‘This will be the main proposition for Sanlam’s financial planning business, which is growing rapidly. In order to defend their fees, the amount financial advisers pay to fund managers has to go down.
‘Larger clients access our directly invested solution, which works well and we can control the costs. These funds are enabling smaller clients to get access to our directly invested solutions that can cut out third-party fees.’
In January, Sanlam UK acquired Preston-based chartered financial planning firm Astute Wealth Management to deepen its presence in the North West.