Openwork is to launch a UK equity income fund and a strategic bond fund for its advisers network as it aims to diversify its new range.
Available from 5 December initially through the firm’s newly-launched model portfolios, the Omnis Strategic Bond fund will be run by Fidelity International veteran bond manager Ian Spreadbury and co-managers Claudio Ferrarese and Tim Foster.
The Omnis UK Equity Income fund will be managed by Martin Cholwill at Royal London Asset Management and will sit alongside the existing Omnis UK Equity and Income & Growth funds in the portfolios.
Omnis Investments chief investment officer Toni Meadows says : “The new funds offer diversification benefits, as well as the ability to deliver meaningful yields to the portfolios, and are a great addition to our armoury.
“Six months in and the Omnis Managed Portfolio Service is already gaining traction, and adding additional funds to the toolbox makes us more confident that we can deliver greater, cost-efficient diversification and even better risk-adjusted returns”.
Shore Financial Planning director Ben Yearsley says the two new funds are both “excellent”.
He says: “Spreadbury and Cholwill are both excellent managers. It makes sense for groups with enough assets under management to launch their own fund ranges and outsource the fund management.
“It also makes sense for fund groups as although they will have to take a hit on fees, they don’t have any real distribution.”
Openwork’s model portfolio is an overlay of the Omnis fund range, which is currently managed by companies including Baillie Gifford, Jupiter and Woodford Investment Management.
The range includes 10 single strategy funds and surpassed £5bn in assets in August.
Recently, networks like Openwork have publicised the success of their in-house ranges, citing increased flows and assets but defended themselves against accusations of product bias .