Quilter Cheviot has launched a range of eight reduced-cost ‘Building Blocks’ funds to its managed portfolio service (MPS) service.

The funds are designed to provide geographic or asset class exposure.

The funds aim to reduce overall costs while expanding the investment opportunities available to those invested in the service.

Quilter Cheviot is not charging a fund management fee for running the funds. The investment manager said that this is to ensure clients receive maximum cost reductions while mitigating any potential conflicts of interest.

The funds will be managed by head of MPS Simon Doherty and deputy head of MPS Antony Webb.

Mr Doherty said: “We see these changes as enabling greater sophistication in our portfolio construction process. Clients, for the first time, will benefit from the direct equity expertise of our 10-strong equity research team across certain allocations, while continuing to benefit from our award-winning investment fund research capabilities across others.

“The end result is an enhanced investment offering, which simultaneously reduces the overall cost of investing for clients.”

The changes result in a reduction in the weighted ongoing charges figure of the underlying funds of 30-40%, Quilter Cheviot said.

The eight new funds are:

• MI Quilter Cheviot Conservative Fixed Interest Fund
• MI Quilter Cheviot Fixed Interest Fund
• MI Quilter Cheviot UK Equity Fund
• MI Quilter Cheviot North American Equity Fund
• MI Quilter Cheviot European Equity Fund
• MI Quilter Cheviot Asian and Emerging Markets Equity Fund
• MI Quilter Cheviot Diversified Returns Fund
• MI Quilter Cheviot Alternative Assets Fund

Parent company, wealth manager Quilter, earlier this month announced that it has re-structured its business, shifting focus towards high net worth and affluent clients.

The core proposition will have two arms. The affluent arm will include Quilter Financial Planning, the Quilter platform, and Quilter Investments.

It will be led by Steven Levin, chief executive of Quilter Investors and the Quilter platform.

The high-net-worth arm will focused on the group’s DFM services. This arm will be led by Andy McGlone, chief executive of Quilter Cheviot.

Quilter announced the reorganisation along with its third quarter results. 

The firm reported third quarter net inflows of £1bn, a big increase from the £0.1bn reported in the same quarter last year.