Paul Stanfield, chief executive of FEIFA, a trade body for Europe-based English speaking expat IFAs, said the deal addressed the issue of how advisers build value into their businesses.
Distinction, a joint venture between multi-asset specialist Armstrong Investment Management, international IFA the Fry Group and fund promoter Harrington Cooper, will make available up to 65% of the share capital of Distinction to advisers, allocating
it based on the per-centage of AUM an adviser has brought to its funds.
Stanfield said: “Distinction allows advisers to share in the success as the assets grow, rewarding IFAs for introducing clients’ assets.”
Distinction has UK and Dublin domiciled fund ranges consisting of riskrated
It is planned that Distinction will float on the stock market in around five years. The share capital will be allocated the day before the UK Retail Distribution Review comes into force in 2012.
It will be distributed on a sliding scale, with money contributed in 2010 resulting in more equity than the same amount invested in 2012.
Stanfield said a further benefit of using Distinction, the fund managers behind which are Patrick Armstrong and Ana Cukic Armstrong, the former head of multi-manager at Insight Investments, was that it allowed advisers to concentrate on financial planning
and client facing roles, while professional investors looked after portfolio management.
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