Wealth management group Fairstone is building on the success of one of its MPS ranges by converting four of the portfolios into funds. The move will cut client charges by up to 20%.
The change involves four portfolios in the Fairstone Systematic Powered by Dimensional MPS range and reflects the success of these globally diversified low-cost portfolios.
They have been converted into the new IFSL Fairstone Systematic funds, with combined assets under management of around £600m.
The MPS portfolios with risk ratings 4 to 7 have been converted – or ‘unitised’ – with their assets transferred into the four new multi-asset funds.
Fairstone expects the ongoing charges figure (OCF) for the portfolios to be cut from between 0.42% and 0.43% to a target of between 0.33% and 0.34% for the new funds. In addition, the funds will offer Capital Gains Tax benefits for investors holding them outside a SIPP or ISA.
The company appointed the Marlborough Group’s Investment Fund Services (IFSL) as the funds’ authorised corporate director (ACD) to help launch the funds. Now they have been launched, IFSL will provide oversight and has ultimate regulatory responsibility to the Financial Conduct Authority (FCA).
Fairstone has appointed Dimensional Fund Advisers as the sub-investment manager for the funds, with responsibility for day-to-day investment decisions.
Nick Stebbing, Chief Product & Proposition Officer at Fairstone, said: “We’re very pleased with how the whole process of launching the funds has gone. IFSL and the wider Marlborough Group are respected names in the industry, and we believe they’re a strong partner to support Fairstone as we continue our growth story.”
Martin Ratcliffe, Co-CEO of Investment Fund Services, said: “We’re delighted to have been selected by Fairstone to help them launch their new funds. Now they’re up and running, we’ll continue to work in partnership with the team at Fairstone, providing expertise and oversight to help safeguard the best interests of the funds’ investors.”
