Thesis launches direct securities model range of portfolios

Thesis Asset Management plc, the investment manager focused on professional partnerships, has launched the direct securities model, a risk-rated range of model portfolios that invest in direct securities in addition to funds.
Managed on the Thesis in-house platform, the new portfolios add to the company’s existing offer of active and passive model portfolios that invest solely in funds.
Holding direct securities compared to funds only can potentially save costs for the client depending on their appetite for risk. At the top end of the range of seven mandates, the indicative savings are 42bps, at mandate four, the saving is 31bps, falling to zero at mandate one, which typically has little or no equity exposure.
The securities models are available through Thesis with a minimum investment level of £25,000.
Lawrence Cook, Director of Marketing and Business Development at Thesis commented:
“Advisers can now offer their clients model portfolios that hold individual securities as well as funds, offering a saving on the underlying management fees within the portfolio. We anticipate that the securities held directly will be selected by our proprietary stock screening system and represent the UK equity proportion of the portfolios. We are exploring the potential for offering this new service through other wraps in future.
“The financial services sector has been seeing downward pressure on fees since RDR, and like all service providers, advisers increasingly need to demonstrate their value to clients. We believe this innovation will help them to do so. The minimum entry point of £25,000 is a very low entry point to get direct equity investment and really bring a sophisticated discretionary service within reach of a much greater audience.”