Sanlam launches model portfolio wrap

Sanlam Private Wealth has launched a specialised wrap for advisers outsourcing to discretionary managers.

The Sanlam Portal, launched to complement its Accel risk management tool, is designed purely for model portfolios - a space in which it says traditional platforms "struggle".

"There has been nothing built specifically for model portfolios - all other platforms and wraps are built for wider functionality," said Sanlam UK head of distribution Nigel Speirs (pictured).

Trialled at Sanlam Private Wealth, the specialist wrap will now be rolled out to the wider IFA market. Launched initially with Sanlam's own discretionary portfolio offering Sanlam Fund Solutions, Speirs said he is looking to bring on board a further ten DFMs. 

A passive version of Sanlam's Model Portfolio Service will also be available on the portal shortly. 

The bespoke wrap holds a general investment account, ISA, personal pension and onshore bond. It charges a product fee of 40bps capped at £400 per product.

A second version, set for launch over the next two months, will add offshore bond functionality and give clients access to valuations.

Sanlam's new offering comes as traditional wrap platforms face difficulties in the model portfolio arena, according to Speirs.

"We launched it because platforms and wraps seem to struggle in this space," he said. "We found many struggle with administration of model portfolios - such as the ability to pay the discretionary manager and IFA."

Sanlam's portal allows payment to the DFM and adviser with a transparent  breakdown of charges between IFA, DFM and portal.

The online portal will not allow the adviser or customer to trade, with the DFM in sole control.

Sanlam UK is the main institutional shareholder of Nucleus, owning 43% of the wrap. Speirs said the new portal is a "completely different" proposition to David Ferguson's wrap because it is limited to the model portfolio arena.

In April, Sanlam UK announced it was rebranding several of its subsidiaries. The initiative saw Merchant Investors and subsidiaries re-branded Sanlam Investments and Pensions and Buckles Investment Services renamed Sanlam Private Wealth.