Thesis Asset management has added direct UK securities to its Optima fund range for the first time, helping to bring down the costs of the portfolios for clients.
The direct exposure to UK stocks now replaces almost all of the UK equity unit trusts previously held by the funds. Thesis will continue to hold funds in other asset classes within the Optima range, which consists of income, balanced and growth portfolios.
The move means the ongoing charge figure (OCF) for all share classes has been reduced, with the cheapest (Optima Balanced – C share class) falling from 1.34% to 1.04% (see appendix for details).
Thesis already holds direct equities in its securities model portfolios, and this decision exploits the positive track record of the firm’s proprietary quantitative and qualitative process for UK stock selection.
Gaurav Gupta, Model Portfolio Manager at Thesis Asset Management, said: “The industry as a whole is facing pressure on cost and it needs to demonstrate that it provides value for money. We want to maintain diversification in our clients’ portfolios and give them the benefit of lower fees at the same time.
“Our strong track record of investing directly in UK equities means we are confident we can bring down the OCF of our Optima funds without compromising performance.
“We have had a warm reception from both financial advisers and existing clients, while prospective investors are keen to find out more about this innovation, highlighting the demand for cost saving initiatives. Our clients are conscious of the need for suitable portfolios at the right price and we believe this change helps them achieve exactly that.”