Money Marketing
4 September 2002

  • 'Annuitants lose out on £500m'

    5 Sep 2002

    People who bought annuities over the last year without using the open market option could miss out on income totalling more than £500m during their lifetime, according to Britannic Retirement Solutions. But Britannic says the number of people failing to use the open market option will fall with new rules which require providers to tell clients of their right to shop around for an annuity. From the beginning of this month, the FSA is requiring providers to send out ...

  • 'Post-polar world will see IFAs prosper in rich sector'

    5 Sep 2002

    IFAs who turn to the top end of the investment market will prosper as a result of depolarisation and the Sandler proposals, according to investment analysts Cerulli Associates. As part of its latest UK fund industry research, Cerulli predicts IFA market share will increase from the current 44 per cent to 51 per cent by 2006 if depolarisation happens by the end of next year. It says the numbers of IFAs may shrink as some opt to go multi-tied but those remaining independent ...

  • 'Son of with-profits' for Scottish Equitable

    5 Sep 2002

    Scottish Equitable is to launch a "son of with-profits" unit-linked smooth managed fund in the next month. It intends this product to be the main fund for bonds and an option for pensions. The smoothing element is likely to be diminished. Industry commentators say a unit-linked structure would be financially attractive as it would be less capital-intensive. Public relations manager Lesley McPherson would not comment on the plans but says: "Both Sandler and the ...

  • 'Use MP pension rise to aid state scheme'

    5 Sep 2002

    One in five UK voters believes the improved pension deal that MPs passed for themselves in July is disgraceful and more than a quarter think that the extra cash should be used to boost the state pension, according to research conducted for stockbroker Comdirect. The survey reveals that 21 per cent of people think the deal is unfair and 26 per cent believe the money should be spent on increasing the state pension. Twenty-seven per cent say if the money is not spent on ...

  • 53% of brokers back no regulation for buy to let

    5 Sep 2002

    The majority of intermediaries support the Treasury's decision to leave buy to let out of FSA regulations for mortgages, according to research by specialist lender Future Mortgages. But while its survey of 500 brokers shows that 53 per cent agree with the Treasury, a substantial 41 per cent say the sector should be regulated from 2004, with only 6 per cent unsure. Future says it agrees with the majority view as it has always argued that buy to let is a commercial transaction ...

  • 60 per cent of workers support compulsion

    4 Sep 2002

    Sixty per cent of UK workers believe they should be compelled to pay into a company pension scheme in addition to State pension contributions, according to a survey for the National Association of Pension Funds. Public awareness of which Government department deals with pensions is virtually non-existent with only 7 per cent naming the Department for Work and Pensions, while 32 per cent named the wrong department and 61 per cent didn't know.

  • Abbey offering IFAs single net gateway for its brands

    5 Sep 2002

    Abbey National is offering a single IFA internet gateway for all its brands follow ing a repositioning of its businesses under the Abbey National for Intermediaries umbrella. The company says the centralisation of its brands into a one-stop shop is part of its preparation for depolarisation. All intermediary business will be centralised to a single point of contact, including mortgages. The logos of the key brands in the stable - Scottish Mutual, Scottish Provident, James ...

  • Aegon takes stake in Assureweb

    4 Sep 2002

    Aegon UK have become the fifth provider to buy a stake in the Misys portal Assureweb. It follows Clerical Medical, Friends Provident, Norwich Union, Scottish Widows purchase of 40 per cent of the portal in January. Misys retains a majority stake of 60 per cent. Collectively the five providers have made a £9.2m investment in Assureweb and have committed to payments of £16.8m for services relating to usage of the portal, which is open to all providers and IFAs. 

  • Aegon to cut 600 staff

    6 Sep 2002

    Aegon UK is looking to lose up to 600 jobs to balance out its purchase of IFAs in a bid to become a top 5 player. Most of the jobs are likely to go at its Edinburgh headquarters. It says investments in technology will lead to cost savings of £40m by next year.Aegon UK group chief executive David Henderson says the move is a consequence of volatile stockmarkets and pressures on profit margins.

  • AITC and Aifa aid IFAs in PI plight over splits

    5 Sep 2002

    The AITC is working with Aifa in a bid to ease the plight of IFAs struggling to get professional indemnity insurance because of their potential exposure to split-caps. The AITC is concerned that IFAs will be forced to stop writing investment trust business because PI insurers are indiscriminately raising premiums to reflect their fears of legal action from investors who have lost money through split caps. It has joined with Aifa to investigate whether IFAs will be able ...

  • Are jobs going East?

    5 Sep 2002

    It is possibly a little early into the new millennium to start thinking about who journalists will be identifying in 2999 as the best and the worst politicians of the previous 1,000 years. But it has to be a fair bet that when it comes to the most incompetent Chancellor, Gordon Brown will be at or near the top of the list. There are not many things in which it can be said that the UK is still a world leader. Before Mr Brown's arrival at No 11, it was fair to say our life and ...

  • Berkeley grows a hybrid

    5 Sep 2002

    Hospitalcare from Berkeley Alexander is a private medical insurance plan that features elements of critical-illness cover and healthcare cash plans. Commenting on how the plan fits into the market, Carr says: "Overall, the plan offers reasonably comprehensive medical cover at a reasonable cost. It combines the benefits of private health insurance, critical-illness insurance, accidental death insurance and hospital cash benefits. It should fit in well in the current market." Jones ...

  • Blair makes summit plea for ethical investment

    5 Sep 2002

    Prime Minister Tony Blair has used the Earth Summit in South Africa to call on the financial services industry to do more to promote sustainable and ethical investment. In a speech delivered in Johannesburg on Monday, Blair endorsed the London Principles, a new code drawn up by the Corporation of London. The code aims to encourage financial services firms to promote social development and long-term economic growth as well as protecting the environment. The code ...

  • Cassells is out as Old Mutual restructures

    5 Sep 2002

    The manager of Old Mutual's flagship hallmark growth and income portfolios, Logie Cassells, has left the firm. His departure comes with the firm seeking to boost its flagging performance. It is another round of moves at Old Mutual following the departure of its European equities team and loss of marketing director Barry Russell. The restructure also sees product development manager Chas Dhabia and regional sales manager Paul Field leaving. Cassells' ...

  • Change brings opportunity

    5 Sep 2002

    With the Pickering and Sandler reviews of pensions and long-term savings recently released and the expectation that the FSA will endorse the proposals, a period of uncertainty lies ahead. I read a lot of doom and gloom in the trade press but it is my view and experience that with most change there is usually opportunity. Up to 6,000 advisers could get themselves certified. They are the 8 per cent or so of UK financial advisers who have sufficient AFPC (or similar) qualifications ...

  • Chartwell axes Cockerill and admin staff in 'tough market'

    5 Sep 2002

    IFA Chartwell Investment Management has axed several of its staff - including high-profile head of discretionary administration Tim Cockerill - in a cost-cutting exercise. Cockerill and four other staff were told last week that their jobs were to go, with the IFA struggling in the present market conditions. The remaining staff will collectively assume the responsibilities of Cockerill and the other four - who mainly performed admin duties - although it is seeking several ...

  • Chartwell balances risk with income service

    5 Sep 2002

    IFA Chartwell Investment Management is offering a new service for investors who are struggling to meet their income requirements. Incomeline aims to help investors achieve a balance between the levels of risk to achieve income returns. It keep them updated about products, including risk ratings and information such as building society and National Savings rates. Incomeline also includes details of Chartwell's recommended distribution bonds and how to get a quote for ...

  • Child's pay in AITC factsheet

    5 Sep 2002

    The AITC is publishing a free factsheet for parents, aiming to explain the benefits of investment trusts in saving for children. It sets out how to invest and explains taxation issues and inheritance tax planning. Based on performance figures to the end of July, the AITC says £50 a month invested over 18 years in the average investment trust would have yielded £23,189 while a £1,000 lump sum over 18 years would have delivered £7,170. The ...

  • CIS calls for non-exec directors' roles to be strengthened

    9 Sep 2002

    CIS is calling for the role of non-executive directors to be strengthened to increase transparency and provide clearer lines of accountability in companies.

  • Clementi appointed as new Pru chairman

    6 Sep 2002

    Prudential has confirmed that the deputy governor of the Bank of England David Clementi will become its new chairman. The appointment was widely anticipated and follows the standing down of previous chairman Sir Roger Hurn following his previous leadership of troubled telecoms company Marconi.

  • Correspondent's week

    5 Sep 2002

    My instructions were quite precise. We want you to do Correspondent's Week but forget your week and concentrate on last week's race. So, out the door went a week of City meetings in search of the capital for my new retiring IFAs' venture and the finalisation of Impartial's new brochure on mortgage advice and in came an article dedicated to my new hobby - racing Ginetta sports cars. It is Saturday 8am and I am at my local track - Silverstone- in the knowledge ...

  • Coventry revamps mortgage platform

    4 Sep 2002

    Coventry Building Society has updated its mortgage portfolio to offer new house purchase, remortgage and buy-to-let products. The range includes a loan capped at 5.85 per cent until September 30 2007, with a current rate of 4.85 per cent, which is 0.90 per cent of its standard variable rate. The maximum loan to value is 95 per cent. It also includes a new buy-to-let Flexx product with a rate of 5.99 per cent and maximum LTV of 85 per cent.

  • Critical advice

    5 Sep 2002

    Last time I looked at how to use the S2P, targeting protected rights funds and protection benefits on pension plans as concerted campaigns to give your business a boost. Here I will look at three slightly more technical campaigns which can provide even greater rewards: how to exploit the new transfer regulations, income drawdown in payment transfers and concurrency. Do you have clients who previously failed the GN11 or valuation test but who may still benefit from making ...

  • Critical condition as premiums set to rocket by 50%

    5 Sep 2002

    Guaranteed critical-illness policy premium rates could leap by 50 per cent in the next 10 months in a dramatic market shift which IFAs fear could spell the end of the market. They claim the guaranteed market would virtually disappear as consumers already think CI cover is too expensive. Guaranteed CI, which offers review-free premiums, dominates the market, accounting for almost 98 per cent of the 750,000 policies sold in 2001. The premium rises, expected to ...

  • Deutsche narrows focus to 25 UK stocks

    5 Sep 2002

    Deutsche Asset Management, which will be known as DWS Investments from this month, has created the DWS UK opportunities fund. The fund is more aggressive than the Oeics in the company's existing range. It aims for capital growth by investing in a concentrated portfolio of 25 UK stocks. The fund will be managed by Phil Doel, who joined the company in January. He is a member of Deutsche's UK equities team and has seven years experience of managing retail and institutional ...

  • Down to a fine chart

    5 Sep 2002

    I am extremely concerned about the volatility that we have seen recently in the stockmarkets. I have heard a lot about people who use charts or technical analysis to predict likely trends. How do these charts work and is there is any substance to them? Technical analysis is a complicated sounding name for a basic approach to investing. Simply put, technical analysis is the study of prices, with charts being the primary tool. The roots of modern technical analysis stem ...

  • E swoops to conquer

    5 Sep 2002

    It may not be obvious to everyone but insiders such as Financial Technology Centre director Ian McKenna say the signs are definitely there. Over the past six months, the financial services industry has finally been bitten by the technology bug. The words of Ron Sandler's report are etched on McKenna's brain to the extent that he even knows the page number where it recommends making "end-to-end electronic processing of transactions the norm in the industry". The ...

  • E-learn and earn

    5 Sep 2002

    The financial services sector has seen many mergers and acquisitions in recent years, with some of the biggest and best-known financial brands in Europe joining forces in an increasingly competitive market environment. Financial institutions are constantly having to update, rebuild and integrate IT systems to create a solid infrastructure that will support their customer base while offering competitive value-added services. Simple enough in theory, yet, regardless of ...

  • Fidelity is leading fund sales league by nearly £100,000

    5 Sep 2002

    Fidelity's total net retail sales outstripped its nearest competitor by almost £100m in the second quarter of the year, according to a confidential report only available to fund managers. The Fund Sales Report, seen by Money Marketing, shows that Fidelity's sales hit £426m in the second quarter while nearest rival HSBC - which recently lost its top-performing UK and European fund management team - took in £333.5m. Third was Legal & General ...

  • FSA dispute sees resignation of David Wootton

    9 Sep 2002

    The FSA has intervened to stop Eurolife Assurance Company from writing new business and secured the agreement of managing director David Wootton to resign from EAC's board and not to seek a senior job in the UK financial services industry.

  • FSA to take 'kindly' stance on PI insurance for IFAs

    5 Sep 2002

    The FSA plans to soften its attitude towards IFA firms unable to get compliant PI cover as it takes steps to address what it has identified as a serious concern. IFAs having difficulty getting PI cover because of the state of the market rather than past wrong-doings are to be treated more "kindly" by the FSA in a move which has been welcomed by IFAs and Aifa. This week, the FSA asked Aifa to survey its membership to identify if firms are having difficulty getting cover ...

  • FundsDirect chief Ewing Buys 33% of Bates IFA

    5 Sep 2002

    Leading IFA Bates Investment Services is selling a third of its business to an investor consortium in a multi-million-pound deal designed to propel the firm into the top 20 of UK distributors. Following 18 months of negotiations, Asset Strategies - an institutionally backed cash shell created to invest in IFAs - is taking a 33 per cent stake in a move which will see its chief executive Sean Ewing become Bates' non-executive chairman. Director Graham Bates, who founded ...

  • GAIM fund hedges in transparency

    5 Sep 2002

    Global Investment Advisers has established the GAIM market neutral fund, a tracker fund of hedge funds that invests in the top 15 to 20 hedge funds listed on the equity market neutral and convertible arbitrage sub-indices of the CSFB-Tremont Hedge Fund Index.

  • Get back to the real world of client borrowing

    5 Sep 2002

    Please spare a few moments to ponder over the future not of mortgage regulation or what is the next move with interest rates but the very basic ingredients that we should advise our clients on. How much to borrow and over how long. Why does everybody take a 25-year mortgage? Of course, with flexible mortgage schemes available, many people will overpay and clear the mortgage earlier, obviously saving a great deal in interest to the lender. Many first-time buyers I see ...

  • Get flexible with Standard Life

    5 Sep 2002

    Standard Life - Personal Pension FlexType: Personal pension Minimum premium: Lump sum £1,000, monthly £40, annual £400 Minimum-maximum ages: 1 - 75 Fund links: Sterling one, fixed interest one, index linked one, property one, protection one, structured one, managed one, ethical one, stock exchange one, international one, European one, Japanese one, North American one, Pacific Basin one, UK equity one, FTSE tracker one, Far East one, ...

  • Gittings quits FSA after only five months

    9 Sep 2002

    FSA director insurance firms David Gittings is quitting his job after only five months to join the board of Wellington Underwriting.

  • Grey area as Royal London names protection company

    5 Sep 2002

    IFAs have questioned Royal London's decision to brand its long-awaited protection business Bright Grey, saying that consumers will not make the connection between the name and the protection market. The life office says the name will set the new business apart from competitors and strike a chord with consumers for offering something different. But IFAs say the name is not connected with the insurance industry and consumers will struggle to understand what it is about. Over ...

  • Helping hands

    5 Sep 2002

    The post-stakeholder world is tough for life companies, forcing them to question the traditional operating models and determine their core competencies. The focus on reducing costs means that outsourcing non-core activities is becoming a commercial necessity. When a company is considering its strategic options there can be value in ringfencing the annuity operation and adopting a different strategy. This is almost certainly the case for those not marketing annuity products but ...

  • HSBC rocked as five fund stars quit for Cazenove

    5 Sep 2002

    HSBC Asset Management has been left reeling by the defection of five key fund managers from its highly regarded European and UK teams to stockbroker Cazenove. The managers - including UK growth and income star fund manager Tim Russell and respected European growth manager Chris Rice - are expected to leave within three to four months to spearhead Cazenove's push into the core areas of the retail market. Many IFAs say they will advise clients to follow the managers ...

  • IFA caution shows in Fidelity sales

    5 Sep 2002

    Fidelity believes IFAs are more bearish about the stockmarket than their clients in the light of figures which show its adviser sales have fallen by comparison with its direct channel. The company claims there are signs of significant divergence between IFA and consumer confidence as its month-on-month and year-on-year figures show direct sales rising relative to adviser sales. Although Fidelity's IFA volumes account for 80 per cent of its total, it is reading this ...

  • IFAs hit new high with life and pension share

    5 Sep 2002

    IFAs' share of life and pension business is hitting record levels as sales continue to grow despite volatile markets. Latest figures from the ABI for the second quarter of this year show IFAs accounted for 55.5 per cent of individual life business, the highest-ever level, up from 52.8 per cent in the same period last year. IFAs are the dominant distribution channel for life, pension, annuity, income drawdown and protection business, with 60 per cent of individual sales ...

  • IFAs plan to multi-tie

    5 Sep 2002

    Almost half of the LIA's IFA membership plan to take the multi-tied route following the shake-up of distribution after Sandler and CP121. A survey of the association's IFA membership reveals 57 per cent will move away from being independent and 70 per cent of those will opt for the multi-tied option in a depolarised world. This means 40 per cent of LIA IFAs say they will become multi-tied. Among the rest of the advisers who said they would move away from the IFA ...

  • Independent view

    5 Sep 2002

    Most things are open to interpretation. Either there is a problem with the message or a problem with the audience, it is all a matter of which side you are on. However, sometimes, a message is put across in such a way that there is very little scope for misunderstanding. Disagreement, yes, but misunderstanding? Most definitely not. Sandler is a case in point. The content is very easy to read and highly transparent, leaving very little room for confusion. However, going ...

  • Indian government bails out unit trust

    4 Sep 2002

    The Unit Trust of India is set for a £2bn rescue package from the Indian Government after years of poor performance. The investment vehicle has 29m investors and was set up in 1964 by Act of Parliament and has a current direct salesforce of 64,000. It is the biggest investor in Indian equities. 

  • Inside edge: Ian Chimes

    5 Sep 2002

    Is an AAA rating worth more than five stars? If a fund is downgraded from AA to A, is this worse than being downgraded from five stars to three? The relationship between fund management companies, ratings agencies and intermediaries has historically been one of mutual dependency. A good rating from Standard & Poor's Fund Services (still referred to nostalgically as Fund Research), Micropal or Old Broad Street Research gives a fund management group a marketing story. It ...

  • Investment

    5 Sep 2002

    Conflicting signals on the state of the US economy and an American attack on Iraq knocked confidence on Wall Street and sent global bourses lower last week, reversing most of the gains made in the previous week. The FTSE World index shed 2.4 per cent. In the US, Tuesday saw the release of encouraging durable goods orders for July which showed their biggest increase in nine months. The news, temporarily at least, put fears of a double-dip recession on the backburner. However, ...

  • Investment view

    5 Sep 2002

    I confess to being confused by two very different - and somewhat contradictory - reports into the same set of statistics published last week. According to one publication, sales of investment funds were up by 7 per cent in July to £4.1bn. These figures come from the IMA, a body which has had more name changes than the average City firm. Yet, reporting on precisely the same set of statistics, a leading financial daily newspaper pointed to sales of Isas tumbling in the wake ...

  • io investors - Defensive Equity Fund

    9 Sep 2002

    Monday, 9 September 2002Type: Fund of hedge fundsAim: Growth by investing in long/short equitiesMinimum investment: Euros 125,000Place of registration: DublinInvestment split: 100% in long/short equitiesIsa link: NoCharges: Annual up to euros 5m 1.5%, euros 5m and above 1%Commission: Initial up to 5%Tel: 020 7024 7449

  • io Investors revisit hedge funds

    10 Sep 2002

    io Investors, a sister company of consulting actuaries Punter Southall, has unveiled its second hedge fund of funds.

  • Irish Life International - Secured Growth Bond 9

    10 Sep 2002

    Tuesday, 10 September 2002Type: Guaranteed equity bondAim: Growth linked to the performance of the FTSE Eurotop 100 indexMinimum investment: £10,000, euro 10,000Place of registration: DublinInvestment split: 100% linked to the FTSE Eurotop 100 indexGuarantee: Option A - Capital returned in full regardless of the performance of the index, option B - 90% of capital returned full regardless of the performance of the indexYield: ...

  • JP Morgan Fleming appoints new chief exec

    6 Sep 2002

    JPMorgan Fleming Asset Management has appointed Paul Bateman as its worldwide chief executive.

  • Julian Gibbs

    5 Sep 2002

    Over the years, nearly all stockmarket-linked bonds have returned capital in full to investors at the end of the investment period. There have been a few exceptions but even then they have paid back almost all the capital and performed better than if investors have been invested directly in the stockmarket. There are, however, some that are seriously in danger of losing a lot of capital, notably the Canada Life bond linked to the Nasdaq index. Most of the new products ...

  • Keydata Investment Services - Extra Income Plan

    10 Sep 2002

    Tuesday, 10 September 2002Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 indexMinimum-maximum investment: £7,000-no maximum Term: Five years Guarantee: Capital returned in full at end of term provided the index does not fall by more than 40%, or if the index does fall by more than 40% and returns to at least its initial levelReturn: Choice of 7% income a year, 1.75% income a quarter or 38% growth ...

  • L&G to raise £789m

    10 Sep 2002

    Legal & General has announced a £789m rights issue to bolster its capital base to take advantage of further consolidation in the industry. It says depressed markets are putting pressures on the industry which only the fittest will survive.

  • Life in the fast lane

    5 Sep 2002

    Life insurance has been the foundation stone of our industry for many years as most customers need some form of life cover as the building block of their financial planning. But while the industry has been innovative with the products on offer, with simple term insurance developing into critical-illness cover, income replacement, waiver and others, the process of setting up the policy for the customer has remained broadly unchanged for 200 years. And what a process. For ...

  • Life with L&G

    5 Sep 2002

    A client of mine wants to invest £35,000 in a low-risk portfolio for income and growth - £7,000 of this will go into a fixed-interest Isa, with the balance into a mix of with-profits and distribution. Who to use? Best to try to use just one investment bond for the with-profits and distribution to get the best allocation rate. Legal & General's with-profits income fund and their pretty respectable distribution fund should fit the bill nicely. Not having ...

  • Lower buy-to-let returns in London than rest of country

    10 Sep 2002

  • M&G appoints new head of equity

    6 Sep 2002

    M&G has appointed David Jane as head of equity investment to replace Vivian Bazalgette, who is retiring. Jane, who was previously M&G's head of investment process, takes over the role this week in a move which will also see Hak Salih - deputy of its capital fund - take over as lead manager from Bazalgette.Jane says he will look to enhance M&G's portfolio construction process and is seeking three analysts to bolster its research team. 

  • Manor Park bond grows capital protection choice

    6 Sep 2002

    Guaranteed investment specialist Manor Park has established three guaranteed growth bonds which are linked to the performance of the FTSE 100 index.

  • Manor Park funds give choice of guarantee

    5 Sep 2002

    Structured product specialist Manor Park is launching three guaranteed growth funds in October offering different levels of capital security and growth. The UK selected growth fund runs until November 2005 and offers returns linked to the performance of the FTSE 100 index. Investors select the level of capital guarantee to suit their risk requirements and receive a corresponding percentage of equity growth. For example, investors choosing to guarantee 85 per cent of their ...

  • Merger for Jackson Batten and AFPS

    5 Sep 2002

    South-east IFA firms Jackson Batten and AFPS are merging to create Aurora Financial Group. The combined group will have 110 staff, including 40 RIs, and a projected turnover of £6m by the end of the financial year. Aurora will have offices in Canterbury, London and Sidcup. It will be headed by joint chief executives David Taplin and Robert Rackliffe, who will also take on the role of chairman on an alternating basis - and managing director Stephen Greenstreet. The ...

  • Mind the gap

    5 Sep 2002

    The Government has an objective of providing individuals with the information for them to plan for their pension provision. The Department of Work and Pensions, together with the Faculty and Institute of Actuaries, has established a new common basis for all pension providers to give illustrations to their customers. This will be used for compulsory annual projections for all money-purchase pensions, and is called the statutory money purchase illustration (SMPI). Pension providers ...

  • Misys cash incentives aim to bring in new IFAs

    5 Sep 2002

    Misys IFA Services is offering IFAs golden hello cash incentives to attract new blood and expand the business in the run-up to its flotation within the next two years. Potential members, as well as existing members looking to expand, can claim £7,500 for the first new RI and £2,500 for each subsequent RI brought into Misys, with no upper limit on the handout and no restriction on spending the money. New firms will get a free licence for IFA desktop software, ...

  • MLP director sacked

    9 Sep 2002

    MLP has fired Dorian Simon, the divisional board member in charge of international activities.Simon is suspected of passing sensitive information to the media which prompted German investor magazine Bourse Online to accuse the company of creative accounting.MLP's share price has fallen 84 per cent since the allegations in May. In June the public prosecutors office siezed documents relating to the company's reinsurance business from MLP's Mannheim office.

  • Morley appoints investment sales head

    4 Sep 2002

    Morley Fund Management has appointed Charles Hoblyn as head of UK investment sales to head up the team responsible for the sales of investment funds to the discretionary market. He will report to head of UK retail Alan Gadd and manage the development of further distribution channels for Morley linked products. Hoblyn joins from Meinl Capital Markets where he was responsible for sales and product development of UK based hedge funds. 

  • My Money Adviser to offer IFAs supermart valuations

    5 Sep 2002

    My Money Adviser is teaming up with fund supermarket Cofunds to offer IFAs and their clients a single-page valuation service which is own-branded for the adviser. MMA parent Quay Software Solutions is launching the service with its new client care suite software which aggregates data from Cofunds, giving clients online access to up-to-the-minute valuations of all of their investments held on the platform. The system allows IFAs to give their clients details of the value ...

  • Net security fears deter advisers

    5 Sep 2002

    Fears over internet security prevent 50 per cent of IFAs from carrying out more business online, according a survey by BT's internet division BT Openworld. The research found that almost all IFAs use the internet in day-to-day business and use trading platforms but many are cautious about the increasing number of internet-based opportunities on the market. BT Openworld Business Internet Services president Tony Harris says: "In the financial services industry, up-to-date ...

  • New Star Asset Management - New Star Japan Hedge Fund

    5 Sep 2002

    Thursday, September 5, 2002 Type: Hedge fund Aim: Growth by investing in Japanese equities Minimum investment: Lump sum $150,000, yen 1.5m Place of registration: Bermuda Investment split: 100% in Japanese equities Isa link: No Charges: Annual 1.5% Commission: None Tel: 020 7225 9200

  • New Star Investment Funds - New Star High Yield Bond Fund

    4 Sep 2002

    Wednesday, 4 September 2002Type: OeicAim: Income by investing in high yield and investment grade bondsMinimum investment: Lump sum £1,000, monthly £100Investment split: High yield bonds 55%, investment grade bonds 45%Yield: 7% grossIsa link: YesPep transfers: YesCharges: Initial 4.25%, annual 1%Special offer: Initial charge discounted by 0.5% on lump sum investments, 0.75% on Isa investments and Pep ...

  • New Star makes bond fund debut

    10 Sep 2002

    New Star Investment Funds has unveiled its first bond fund, the New Star high yield bond fund.

  • Newcastle Building Society - Guaranteed 5 Star Bond Deposit Account

    5 Sep 2002

    Thursday, 5 September 2002Type: Guaranteed equity bondAim: Growth linked to the performance of the Credit Suisse bond fund US$, Fidelity European growth, Franklin Templeton mutual beacon, IFDC Japan dynamic and Merrill Lynch offshore sterling trust UKMinimum-maximum investment: £1,000-£500,000Term: Five yearsGuarantee: Capital returned in full regardless of the performance of the fundsReturn: 80% of average growth in the performance ...

  • Newton poaches EFM director

    10 Sep 2002

    Edinburgh Fund Managers director and head of private clients Harry Morgan is leaving after five years to join Newton Investment Management. Morgan, who oversaw £300m of assets under management at EFM, will become head of Newton's private investment management division. He will be responsible for developing the Scottish business - which has around £700m under management - and overseeing the existing team of 15 Edinburgh-based fund managers.

  • Northern lights beckon buy-to-let borrowers

    5 Sep 2002

    Most lenders and brokers dismiss speculation that the buy-to-let bubble is set to burst but many warn that falling yields in London are a sign that buy to let is reaching saturation point in the South-east. National broker Park Row Independent Mortgages says it is advising clients to buy properties in the North, where rental yields can be as high as 20 per cent compared with 4 per cent in the South-east. Adviser Paul Singleton says: "More experienced investors are looking ...

  • Northern Rock - Fifty:Fifty Issue 12

    9 Sep 2002

    Monday, 9 September 2002 Type: Guaranteed equity bond and high interest account GUARANTEED EQUITY BOND Aim: Growth linked to the FTSE 100 index Minimum investment: Lump sum £2,500 Term: Five years Guarantee: Capital returned in full at end of term regardless of performance in indexReturn: Up to 70% of growth at end of term Closing date: October 9, 2002 HIGH INTEREST ACCOUNT Minimum-maximum investment: ...

  • Now is the winter of our pension discontent, warns TUC chief Monks

    5 Sep 2002

    TUC general secretary John Monks is predicting more industrial strife over pensions in the coming months and says he would support anybody who takes militant action on the issue. Referring to the two recent one-day strikes by the ISTC union representing workers at the Caparo Steel Group, Monks says he can see more such action taking place as employers continue to bail out of occupational pension schemes. Speaking a week before the TUC's Annual Congress in Blackpool, ...

  • Now L&H claims cheapest 10-yr fix

    5 Sep 2002

    Leeds & Holbeck Building Society is offering what it claims to be the cheapest-ever 10-year fixed-rate mortgage at 5.25 per cent. The rate follows rival Yorkshire Building Society unveiling what it claimed to be the lowest flexible 10-year fix at 5.44 per cent last week. The L&H rate is only available to clients taking its Homecover insurance, otherwise the rate rises to 5.49 per cent. Maximum loan to value is 95 per cent loan. Completion fee is £399. ...

  • Occupational schemes slump

    5 Sep 2002

    The number of employees accruing benefits in private sector occupational schemes fell by 8.3 per cent to 5.7 million in mid-2000 from 6.2 million in 1995, according to the Government Actuary's Department's 11th annual survey of occupational pension schemes. Average contribution rates, employee and employer combined, were 16.1 per cent of pensionable earnings for defined-benefit schemes and 8.5 per cent for defined-contribution schemes. The figure for average assets ...

  • Opening up hedges

    5 Sep 2002

    The FSA's decision to consult with the industry over plans to market hedge funds directly to the public has ignited the debate over whether long/ short funds are suitable for retail investors. Hedge fund providers have welcomed the regulator's proposals to widen the ways in which investors can access the funds but some of the biggest investment houses are concerned about the potential fallout from such a move. Fidelity says that whatever the outcome of the FSA's ...

  • Opportunities in over-50s market

    5 Sep 2002

    Financial services companies are ignoring the growing and lucrative over-50s market, according to a report by independent analyst Datamonitor. Datamonitor found that face-to-face meetings with IFAs were the preferred choice of the over-50s when buying complex items such as life insurance and investment products but when it comes to simpler products this age group are happy to buy direct. The research also found over-50s preferred long-established brands rather than newer ...

  • OUTSIDE EDGE: Michael Owen

    5 Sep 2002

    Performance rating concerns have been in the news again. The 11-strong consortium of UK-based fund managers, including heavyweights, such as Schroders, Credit Suisse, Fidelity, Invesco and Threadneedle are seeking a meeting with the three biggest ratings agencies, namely Lipper, Standard & Poor's and Morningstar. The consortium's conten-tion is that funds sold in Europe are not always positioned by the agencies according to their "true position in the market place". ...

  • Pick a card

    5 Sep 2002

    In the current economic climate many would-be investors are reluctant to invest directly in the stockmarket. Inland Revenue figures reveal a 21 per cent drop in the number of maxi Isas taken out in the 2001/02 tax year as mini cash Isa sales rose by 26 per cent. Lipper Hindsight shows that, as of July 31, 2002, the FTSE 100 was down by 22.3 per cent compared with a year ago and by 30.9 per cent compared with two years ago. Stockmarket volatility has left many ...

  • Pickering could bring misselling, says Ritchie

    5 Sep 2002

    Alan Pickering's proposals for pension legislation by principle rather than by prescription could leave IFAs open to charges of misselling, warns Scottish Equitable pensions development director Stewart Ritchie. In the latest edition of the Ritchie Papers, he warns that the less prescriptive approach could lead to different interpretations of the rules, leaving IFAs open to claims of misselling by the FSA. Ritchie warns that increased discretion for IFAs could mean ...

  • Platinum Capital Management - Platinum Washington Fund

    5 Sep 2002

    Thursday, September 5, 2002 Type: Hedge fund Aim: Growth by investing in US equities Minimum investment: Lump sum $150,000 or Euros 150,000 Place of registration: Cayman Islands Investment split: 100% in US equities Isa link: No Charges: Annual 2.5% Commission: Subject to negotiation Tel: 020 7887 6110

  • Platinum Capital Management - Platinum Wealth Management Bond

    5 Sep 2002

    Thursday, 5 September, 2002Type: Single premium unit-linked bondAim: Income or growth by investing in a wide range of securities and fundsMinimum Investment: Lump sum $100,000Place of registration: Isle of ManInvestment split: 100% invested in a wide range of securities and fundsIsa link: NoCharges: Initial up to 1.7%, annual 1 - 2.4%Commission: Initial up to 5%Tel: 020 7887 6110

  • Product matters

    5 Sep 2002

    Yorkshire Building Society's 5.44 per cent 10-year flexible fix is not the cheapest rate in the 10-year fixed-rate market but it does offer the best value for anyone wanting a long-term fix. The longer the term of a deal, the more important it is that it offers maximum flexibility and Yorkshire scores well. A key benefit with all Yorkshire's mortgages is that as well as being on daily interest and flexible, with no compulsory insurance, they allow unlimited penalty-free ...

  • Profits fall at Schroders

    4 Sep 2002

    Schroders underlying asset management profit has fallen to £46.8 million for the first half of this year from £74.2m for the same period last year. Its pre-tax profit for the six months to June 30 fell to £20.5m from £41.5m last year and revenues dropped to £250.1m from £276.6m in 2001. It attributes this to sharp falls in equity markets and to restructuring its business, upgrading its technology platform and outsourcing admin. It is currently in ...

  • Pru slashes payouts by 10 per cent on with-profits

    5 Sep 2002

    Prudential has announced it is slashing payouts on with-profits by up to 10 per cent blaming substantial declines in the stockmarkets.

  • Raising Standards set to cover over half of financial services industry

    4 Sep 2002

    Over 50 per cent of the UK financial services market is now engaged in the Pensions Protection Investments Accreditation Board's Raising Standards quality mark scheme. PPIAB says companies representing a further 15 per cent are in discussions with a view to signing up to the brand accreditation programme.

  • Recurring PI Royal abdication

    5 Sep 2002

    It would be extremely unfortunate if “indiscriminate” conditions applied by professional indemnity insurers began to erode an IFA’ ability to recommend a full range of investments. That is the threat from problems over split caps.The Aitc is discussing the situation with Aifa and other organisations, presumably the regulator and PI insurers.As in the past, it appears the PI market is reacting after the event and may be overreacting. Some split caps went into ...

  • Rothschild goes up for sale as the bear market bites

    5 Sep 2002

    Rothschild has become the first major victim of volatile market conditions, putting its retail and institutional asset management arms up for sale to concentrate on its private banking business. RAM chief executive Paul Manduca admitted this week that market conditions have sapped income flows and it has decided to seek a takeover or alliance with a more sizable asset management company. Manduca, who does not expect to have a role in a merged company, claims interest ...

  • Royal row over Hargreaves Lansdown 'scaremongering'

    5 Sep 2002

    Royal & Sun Alliance and leading IFAs have accused Hargreaves Lansdown of scaremongering after it drew parallels between R&SA and Equitable Life and recommended policyholders to consider transferring. Several top IFAs have dismissed comparisons with Equitable, saying R&SA has a parent company with shareholders and they are satisfied that it has the assets to match its liabilities. Other advisers say they are reviewing clients on a case-by-case basis. R&SA, ...

  • Ruling leaves Abbey Nat facing £10m payout

    5 Sep 2002

    Abbey National faces payouts totalling up to £10m to 20,000 customers after the Financial Ombudsman upheld a complaint over mortgage pricing. The ruling against Abbey's "dual-pricing" policy follows a customer complaint that a cashback mortgage deal remained linked to the standard variable rate of 7 per cent despite offering its cheaper Classic base rate tracker mortgage, running at 0.9 per cent above Bank of England base of 5.5 per cent at the time. Abbey says ...

  • Savills discount loan at 3.89% in Co-op deal

    5 Sep 2002

    Savills Private Finance is offering a three-year discount mortgage at 3.89 per cent backed by Co-operative Bank. The mortgage gives an initial discount of 1.2 per cent off the Co-op's current standard variable rate of 5.09 per cent. The loan has a number of flexible features, including the option to make overpayments of up to 10 per cent of the balance each year without incurring any penalties and the ability to switch into any of the Co-op's fixed rates during ...

  • Schroder star fund manager appointed global CIO

    5 Sep 2002

    Schroder star fund manager Mark Pignatelli has been appointed global chief executive officer in a move which will see him relinquish management of two European funds.Pignatelli, who manages the European and European dynamic growth funds, will hand over their management to Adriaande Molven Otterloo and Andrew Lynch respectively.

  • Schroders moves into the hedge Fof sector

    5 Sep 2002

    Schroders Private Bank is making its debut in the hedge fund of funds market with the launch of its alternative strategies fund diversified. Domiciled in Bermuda, the SASF diversified offshore fund will be a close-ended investment company investing in individual hedge funds and marketed directly to UK investors. The fund is the first launched since Schroders' purchase of hedge fund boutique manager Beaumont this year and the addition of its alternative investment team ...

  • Scottish Life International - Select Income & Growth Bond 3

    6 Sep 2002

    Friday, September 6, 2002Type: Guaranteed equity bondAim: Income and growth linked to the performance of the FTSE 100, S&P 500 and Eurostoxx 50 indicesMinimum investment: Lump sum £10,000Place of registration: Isle of ManInvestment split: 100% linked to the performance of the FTSE 100, S&P 500 and Eurostoxx 50 indicesGuarantee: Opportunity option - capital returned in full unless one or more of the FTSE 100, S&P 500 or Eurostoxx 50 ...

  • Scottish Life International covers all options

    9 Sep 2002

    Scottish Life International has introduced an offshore guaranteed equity bond — select income and growth bond 3 — which is linked to the FTSE 100, S&P 500 and Eurostoxx 50 indices for three years and two months. The opportunity option offers a choice between annual income of 10 per cent, quarterly income of 2.4 per cent and 32 per cent growth. Investors get their capital returned provided none of the stockmarkets fall by more than 30 per cent between October 28, ...

  • Simon Gentry

    5 Sep 2002

    The ABI's European sentry is finding his skills learnt as an anti-apartheid campaigner useful in trying to negotiate to find harmony between the EU and the UK insurance industry. As head of European affairs, Simon Gentry says his job is to manage a team that scans for EU developments affecting the UK insurance industry and assessing their impact. This involves talking to the EU, Government, companies and other European organisations but overall his job is to minimise the damage ...

  • Solutions offers trail cash after retirement

    5 Sep 2002

    Positive Solutions is introducing a scheme which offers IFAs the chance to continue receiving trail commission after retirement as part of a package to recruit new members. In return for a proportional commission charge, the New-castle-based national will deposit ongoing payments directly into an individual's bank account anywhere in the world while allowing the former IFA to track the payments online. If a retired IFA dies before their trail commission runs out, Positive ...

  • Squeeze is being put on the mortgage brokers

    5 Sep 2002

    Broker Talkback (Money Marketing, August 22) asked 10 IFAs who specialise in investments and dabble in mortgages: "Should independent mortgage brokers face the same regulatory requirements as IFAs?" This got a 100 per cent "yes" response. My answer to your question is an emphatic "no". I am an independent mortgage broker representing the client, not the lender. I now specialise in mortgages and refer clients who need specialist investment or protection advice back to their own ...

  • SSAS fees were not guaranteed

    5 Sep 2002

    John McCawley's letter (Money Marketing, August 15) raises a few points and I respond to them in the same order. 1. The 90/10 or directors select portfolio is a fully approved SSAS and is not "fully insured". Whereas the 90/10 is a packaged hybrid. It needs no conversion to take advantage of the full SSAS benefits. 2. We launched the 90/10 in 1992 with a structure of fees that were paid by NPI if the trustees invested in an EPP with NPI regularly at certain levels, ...

  • State of the designation

    5 Sep 2002

    This week, I will continue my look at investment strategies for the benefit of children. Another disadvantage of nominee (or designated) accounts is that any income arising is always treated as the child's income, which means that the parental settlement provisions apply to assess tax income on the parent if it exceeds £100 gross in a tax year, the child is under 18 and not married and the capital to fund the investment originated from the parent. If active investment ...

  • Talkback

    5 Sep 2002

    Is it safe to market hedge funds directly to the UK public? "No. There is a certain amount of risk involved in hedge funds so marketing them directly should not be allowed. They should be regulated." John Stratton, Airevalley IFA "Yes. It is no more safe to market anything from polos to pensions. Provided they give warnings, it should be caveat emptor." Stephen Goddard, Kerygma Consultants "No. It is dangerous. The majority of people do not understand ...

  • Tenet takes ethical road

    5 Sep 2002

    IFA network group Tenet is running a campaign to help its members in the socially responsible investment sector. SRI is the fastest-growing UK investment sector. Legislation introduced recently requires trustees to disclose the extent to which they consider environment, social and environmental factors when managing their scheme. Tenet claims there has been increasing demand for socially responsible funds in product areas such as stakeholder and the campaign aims to help ...

  • The choice of reason

    5 Sep 2002

    Despite the general air of negativity surrounding Alan Pickering's report on pension simplification, it provides a chance to develop greater choice for employees in the way that retirement benefits are taken. Arguably, the key recommendation is the proposed change to the contracting-out regime. The requirement to provide a 50 per cent spouse's pension could be dropped, along with the need to index pensions in payment at the lower of 5 per cent or RPI (limited price indexation). ...

  • They do like to buy beside the seaside

    5 Sep 2002

    Buying a seaside home could be a good investment as well as providing a pleasant place to live, according to research by Halifax. The lender surveyed 100 seaside towns in England and Wales and found that house prices in many have outperformed inland towns. Fifty per cent of seaside towns have seen a doubling in house prices over the last seven years. Padstow in Cornwall fared best of all, with prices tripling over the period. In 1995, the average home in the Cornish town ...

  • Two new fixed rates from Chelsea

    4 Sep 2002

    Chelsea Building Society has announced the launch of two fixed rate mortgages available from August 31. The first will be capped at 2.99 per cent for two years and the other fixed at 4.69 per cent for three years. Both will revert to the Society's standard variable rate following the fixed periods. Chelsea's SVR is currently 5.69 per cent.

  • Two-year fixed rate from The MarketPlace

    10 Sep 2002

    The MarketPlace at Bradford & Bingley is launching a two year fixed rate mortgage at 4.25 per cent, available for remortgages.

  • UCB cuts fixed rates

    9 Sep 2002

    UCB Home Loans says it has launched its lowest ever fixed rates across its self-certification range of mortgages by reducing them all by 0.3 per cent.

  • US scandals have left investors with no confidence in advisers

    5 Sep 2002

    Investor confidence in financial advisers has been shattered following international accounting scandals such as Enron and Worldcom, says a survey from Cavendish Asset Management. Almost half the respondents said they had no faith in advisers, analysts or stockbrokers following the downfall of the US corporate giants. When asked to respond to "the Enron/ Worldcom scandals show you cannot trust even professional people such as investment advisers, analysts or stockbrokers ...

  • Verity's view

    5 Sep 2002

    Here's a brain-teaser. Suppose that a client comes to you, the IFA, with a with-profits pension policy which they have been paying into for the last 30 or 40 years. Very soon, they expect to reap the benefits of all that thrift when the policy reaches maturity. The client, however, is extremely perplexed. An accountant friend of his has calculated the value of his benefits under the policy. If he stays with the life office and buys a very specific annuity from the same life ...

  • Warning of exclusions from basic cover

    5 Sep 2002

    IFAs are warning that professional indemnity insurers are increasingly excluding different business types from basic PI cover, putting more of the risk of pension work on to the adviser. Some IFAs' basic PI premiums have increased by up to 300 per cent but what they are getting for that basic cover is diminishing, with insurers slapping huge excesses on Serps, opt-outs and non-joiner business. One IFA has seen excesses for these sorts of pension business soar from ...

  • Which way now for Isas?

    5 Sep 2002

    Two clear trends have emerged in the past 12 months - borrowing has reached an all-time high while the savings habit remains in the doldrums. Latest figures from the Council of Mortgage Lenders suggest home lending reached a record high in July of £21.8bn. Any fears of a double-dip recession in the US or of the possibility of rising unemployment do not appear to be concerning the consuming instincts of UK homebuyers. The contrast with interest in savings could not ...

  • Wind-ups can bring business for IFAs

    5 Sep 2002

    The winding-up of finalsalary schemes and the shift from defined-benefit to defined-contribution schemes offers IFAs significant business opportunities, according to employee benefit specialist Jardine Lloyd Thompson. The company says the complexity of scheme termination presents IFAs with a clear opportunity to advise on employers' responsibilities. It identifies how prompt actuarial and investment advice on the management of assets and liabilities of a wind-up as ...

  • Women losing out on pensions, say LibDems

    4 Sep 2002

    At least 4.5m women have no basic state pension rights despite having paid £8bn in National Insurance contributions according to Liberal Democrat work and pensions spokesman Steve Webb. He is calling on the Government to launch an immediate inquiry into this "misselling" of pensions and allow women to buy-back the NI contributions they did not pay during the years they paid the lower married rate. Webb says information from the House of Commons library reveals 1.5m of the 4.5m ...

  • Wraps are on but few IFAs are ready

    5 Sep 2002

    Under 20 per cent of IFAs have heard of wrap services despite many product providers planning to introduce them over the next year, according to JP Morgan FundsHub. Wrap services, which bundle investment products so they can be managed as a single valueadded portfolio, are becoming increasingly popular with services such as Barclay's Open Plan and Virgin One accounts. The new generation of wrap services is likely to be offered by the major banks and insurance companies ...

  • Yorkshire tracker guarantees 4.99% fixed option

    5 Sep 2002

    Yorkshire Building Society is offering what it claims is the only tracker mortgage guaranteeing from the outset a future fixed-rate option set at 4.99 per cent. The Your Choice three-year tracker has a rate of 0.25 above the Bank of England base rate until November 2005, giving a current rate of 4.25 per cent. But Yorkshire says to give borrowers the security of controlling future payments, they can transfer into a fixed rate of 4.99 per cent at any time during the three-year ...

  • Zurich Bank to close

    5 Sep 2002

  • Zurich Group announces loss of £1.3bn

    5 Sep 2002

  • Zurich to cut 4,500 jobs

    5 Sep 2002

Poll

Will Greece leave the euro?

Current Issue

Advanced search