Will Skandia's 60bps WealthSelect funds shake up the DFM market?

Skandia is poised to shake up the managed portfolio market with its suite of cut-price model funds, as the first look at WealthSelect reveals half the restricted range is priced at less than 60bps.

In February last year, Old Mutual Wealth CEO Paul Feeney told Investment Week WealthSelect would challenge DFMs and multi-managers on price by providing a free model portfolio service, a statement borne out by new documents released last week. The firm has created 64 portfolios run by Stuart Clark, with eight different risk profiles and a choice of funds including passives to reduce costs. The cheapest, fully active cash-free portfolio carries a weighted TER of 66bps, with the most aggressive and expensive portfolio costing 83bps. Half the portfolios use equity trackers to reduce cost...