Money Marketing
9 January 2002

  • 80 MPs support raising standards

    10 Jan 2002

    A Parliamentary early day motion which supports the Pensions, Protection & Investment Accreditation Board's Raising Standards initiative has gained the support of more than 80 MPs. The EDM was tabled in November by Labour MP Paddy Tipping and commends the first five providers to be accredited by the scheme. The EDM singles out CIS, one of the accredited companies, for praise after it pledged to exceed the minimum standards in the initiative. CIS general manager (life ...

  • ABN Amro - North American Growth Fund

    9 Jan 2002

    Wednesday 9 January, 2002Type: Unit trust.Aim: Growth by investing in North American companies.Minimum investment: Lump sum £1,000, monthly £50.Investment split: Pharmaceuticals 13.3 per cent, cash 10.5 per cent, insurance 8.2 per cent, beverages 7.4 per cent, household products 6.5 per cent, communications equipment 5.8 per cent, IT consultancy and services 4.6 per cent, biotechnology 4.5 per cent, healthcare equipment and supplies 4.1 per cent, ...

  • Actuaries' anger at terminal reserves

    10 Jan 2002

    The Faculty and Institute of Actuaries has issued a scath-ing response to the FSA's consultation paper on the prudential sourcebook, claiming proposals requiring life offices to reserve for terminal bonuses could cost the industry £1bn. The actuaries claim that no life office would have been able to offer stakeholder if the FSA proposals, which force life companies to take financial strength into account when launching new products, had already been in place. The ...

  • AITC gives tentative welcome to proposals

    14 Jan 2002

    The AITC has given a tentative welcome to the FSA's consultation on polarisation, applauding the paper's radical nature.

  • Autif and the ABI give cautious welcome to regulatory change

    14 Jan 2002

    The Association of British Insurers and the Association of Unit Trust Investment Funds have cautiously welcomed the FSA's proposed changes to regulation. The ABI says it has to look at the FSA's plans in more detail to ensure they meet the objectives of giving people as much access to advice as possible, create a structure consumers understand and help close the savings gap. ABI spokesman Malcolm Tarling says: "We are not against change but we will want to ensure any changes ...

  • Back to the front

    10 Jan 2002

    To write for the first edition of 2002 invites the most obvious of elephant traps, namely to make political predictions for the year ahead. It is a trap I propose to walk into with glee. Feel free to rub my nose against my crystal ball in December 2002. In the world of financial services, the Government is beginning to resemble the German Wehrmacht in 1942. It is fighting wars on so many fronts that one wonders how it has the energy to fight on. From tax credits to baby bonds, ...

  • Bankhall quells fears on independent status

    10 Jan 2002

    Bankhall is moving to reassure members that their independent status will not be affected by Skandia's £210m takeover of parent Lynx. The announcement of the deal at the end of December, just weeks ahead of the FSA's announcement on the future of polarisation, had led to fears that Skandia was trying to buy up distribution ahead of multi-ties. But Bankhall director Tony Murrell has moved to dismiss such fears, stressing that Bank-hall is an IFA support service provider, ...

  • Bankhall tells IFAs to move on

    14 Jan 2002

    IFA service provider Bankhall says IFAs must accept that the FSA is set in its plans to abolish polarisation and that they must look to the future.While expressing concerns over confusion amongst consumers, Bankhall operations director Tony Murrell says: "We see no sense in trying to fight a lost battle of trying to maintain the present structure. Polarisation is now finished and we have to accept that."   

  • BBN shareholders back £48m Berkeley buyout

    10 Jan 2002

    The £47.7m acquisition of Ber-keley Independent network by IFA Berry Birch & Noble gained shareholder approval last week, with about 50 per cent of the network's members taking share options. The move was given the go-ahead at an EGM last week by about 94 per cent of existing shareholders, giving the deal unconditional acceptance. The new company will be called Berkeley Berry Birch. Just under 300 of the network's 550 members have bought up to 2.5 million shares ...

  • Be flexible

    10 Jan 2002

    Since the present Government first came to power, there has been an (understandable) underlying expectation that "something would be done" about inheritance tax. Well, short of increasing the nil rate band in successive Budgets, nothing much has happened. The marketers and advisers on the proliferation of largely (if not exclusively) insurance-based inheritance tax plans are especially interested in trying to glean any shred of evidence of Government thinking on inheritance tax reform. ...

  • Better than best to go

    14 Jan 2002

    The 'Better than Best' rules are set to be removed under FSA proposals published today for the future of polarisation.As part of a larger package of reforms the regulator has proposed scrapping the rules that limit investment in IFA firms.The FSA says doing this will "help maintain a robust independent sector for advice."

  • Britannic Money warns brokers will lose out

    15 Jan 2002

    Britannic Money is warning mortgage borrowers may buy direct from lenders as many will not be willing or able to pay fees to independent brokers if the FSA's proposals are applied to mortgage advice:

  • British Virgin Islands sets up regulatory body

    10 Jan 2002

    The British Virgin Islands is setting up an independent financial services regulatory body. The move by the BVI government follows recommendations made last year by consultancy KPMG which indicated that such a body was a vital component for any offshore financial centre. The Financial Service Commission's main functions will include protection of consumers by ensuring all firms and individuals offering financial services from the islands are authorised, competent and financially ...

  • CA attacks FSA plan

    15 Jan 2002

    The Consumers' Association has issued a hard hitting attack on the FSA's proposals for playing into the hands of big providers and issued a strident defence of independent financial advice.The defence is being led by director general Sheila McKechnie. The CA believes a move against polarisation could deny access to independent advice to the vast majority of the public and plans to campaign against the change in the next few months.

  • CBI survey sees profits tumble for life offices and fund firms

    10 Jan 2002

    Financial services companies have been hit hard by the economic downturn, suffering their biggest fall in profits for almost a decade, according to figures from the CBI. Its quarterly survey with PricewaterhouseCoopers shows business volumes have been falling at their fastest pace for nine years, forcing many companies to cut capital expenditure and marketing costs in a bid to sustain profitability. In the three months to December last year, 42 per cent of companies suffered a ...

  • Change of chief at Invesco Perpetual

    10 Jan 2002

    Invesco Perpetual UK chief executive officer Hugh Ward has quit after less than a year in charge of the combined fund management group. Ward, who is leaving for personal reasons, will be replaced by Rob Hain, chief executive officer of the Canadian arm of North American fund giant AIM. AIM, which is owned by Invesco Perpetual's parent Amvescap, has had Hain at the helm of its Canadian arm since 1998. Ward joined Invesco Fund Managers in 1996 as its head of retail, becoming ...

  • Chelsea enters buy-to-let for students

    11 Jan 2002

    Chelsea Building Society is targeting landlords looking to let to students with the launch of a new buy-to-let mortgage.

  • CLI adds seven offshore fund links

    9 Jan 2002

    Canada Life International is adding seven external fund links to its range of offshore products.

  • Close constructs guide to property

    10 Jan 2002

    Close Property Investment is producing a guide to constructing property portfolios which IFAs can give to clients. Building a Property Portfolio puts forward reasons why property should be considered as a mediumor long-term investment by clients looking for capital growth and income. Close says past investment performance is encouraging and residential property in the Halifax house index for South-east England has seen compound growth of over 8 per cent a year since 1983. Commercial ...

  • Close Fund Management - Close Reserve Equity Fund

    11 Jan 2002

    Friday 11 January, 2002Type: Oeic.Aim: Growth by investing in zero dividend preference shares and capital shares.Minimum investment: Lump sum £1,000, monthly £100.Investment split: Zero dividend preference shares 75 per cent, capital shares 25 per cent.Isa link: Yes.Pep transfers: Yes. Charges: Initial 5 per cent, annual 1.5 per cent.Commission: Initial 3 per cent, renewal 0.5 per cent.Tel: 0800 269824.

  • CML lending edges downward

    10 Jan 2002

    Mortgage lending in November fell by almost 3 per cent to £13.9bn from £15bn in October but was up by 27 per cent on the £10.2bn total in November 2000. The monthly survey by the Council of Mortgage Lenders and the Department of Transport, Local Government and Regions found lending for house purchase declined to £8.6bn from £9bn in October but increased from the £7bn total in November 2000. Remortgaging fell to £4.1 bn from £4.9bn ...

  • Cofunds transfer service to aid IFAs

    10 Jan 2002

    Cofunds is setting up an Isa and Pep re-registration service which enables IFAs to transfer existing client portfolios on to the platform for the first time. The move makes Cofunds the first IFA supermarket to develop a re-registration service, with transfers previously only possible by selling units and then repurchasing them on the platform. Fidelity says it will be introducing a similar service for FundsNetwork in the first quarter of the year. Cofunds' service will initially ...

  • Confusion and chaos will result says Aifa

    14 Jan 2002

    The intention by the FSA to get rid of polarisation will cause chaos and confusion for consumers says Aifa chairman Lord Hunt of Wirral.

  • Co-op gives £75,000 to help cancer sufferers

    10 Jan 2002

    Co-operative Insurance Society has raised over £75,000 for Macmillan Cancer Relief through sales of its critical-illness cover policies since 1999. The society pledged to give £2 to the charity for each new policy sold when it launched the product in November 1999. The donations help fund grants given by Macmillan to cancer patients and their families to pay for holidays and buy practical items such as new clothes and wigs for patients who have lost weight and suffered ...

  • Credit where it's due

    10 Jan 2002

    As a family law solicitor, I thought that I understood pension sharing. However, I have a client who has no pension rights while her former husband is in receipt of his pension. Can you explain how the pension sharing order applies in this case? This is probably one of the most complicated areas of advice. The whole pension misselling scandal centred on people with a pension benefit who moved it to another type of pension in the belief they were obtaining something better. All ...

  • CSAM's Shant to head Euro team

    10 Jan 2002

    Credit Suisse Asset Management head of continental European equities Rajesh Shant has been recruited to head Mellon Newton's European desk. Shant, who manages CSAM's European fund, was only promoted to the head of continental European equities in October but will join Mellon Newton in March. In his new position, he will be responsible for leading and co-ordinating Mellon Newton's European equities team. Shant will take over from Kieran Gallagher, who was recruited ...

  • DBS will count the cost of its hike in charges

    10 Jan 2002

    I refer to the enormous hike in DBS costs and would like to mention a few facts regarding this matter as opposed to the verbiage emanating from DBS. First, I understand from a colleague who joined DBS in l988 that his DBS charge was 8 per cent at that time. Since then it has risen to 12.5 per cent. Second, when I joined in 1995, there were 10 regional meetings each year. After March, when these new charges are proposed, the number of DBS meetings will be four. Third, members ...

  • Deal reopens debate about driving under the influence

    10 Jan 2002

    Skandia's move to acquire Bankhall parent Lynx Group has surprised a market accustomed to its biggest players jostling to secure distribution. Its £210m bid has caught its competitors off guard and reignited the debate over whether ownership of IFAs by product providers will lead the public to question the impartiality of the advice they receive. Clerical Medical head of strategic marketing David Shelton says: "The deal pulls into focus the integrity of advice given by ...

  • Depolarisation - Davies' statement

    14 Jan 2002

    FSA chairman Howard Davies has condemned the polarisation regime as having failed consumers in a statement issued with the FSA's de-regulatory proposals today. Davies says: "This is a significant liberalisation package to enhance consumer choice by breaking the shackles that polarisation puts on competition and innovation. "Our aim is to secure long-term improvements for consumers through greater access to advice and greater choice in the financial products available ...

  • Eagle and Zurich gain quality mark

    10 Jan 2002

    Eagle Star and Zurich Life have become the latest brands to receive the Raising Standards quality mark from the Pensions Protection Investments Accreditation Board. The firms are both part of the Zurich Financial Services group. ZFS chief executive Sandy Leitch was instrumental in driving the Raising Standards initiative while he was chairman of the ABI. Five firms - CIS, Norwich Union, Scottish Equitable, Scottish Widows and Unum - gained the quality mark at its inception in October, ...

  • Elegy to L&G

    10 Jan 2002

    Every time I have severe admin problems with L&G, I vow never to use it again. But this is the final straw. In the middle of September, L&G received a life insurance proposal and the application was marked: "Trust form to follow." The application was then apparently placed in suspense for receipt of the trust form and, even two weeks after receiving the trust forms, the application was still in suspense until I asked for a progress report. In October, L&G came back ...

  • Equitable says scheme has backing of institutional investors

    11 Jan 2002

    Equitable Life chairman Vanni Treves says the society's compromise scheme has received the backing of a number of institutional investors over the past few days.

  • Exchange adding drawdown facility to toolkit

    10 Jan 2002

    IFA portal The Exchange is introducing an income-drawdown analysis facility as part of its pension tools for IFAs. The analysis tool, designed with actuarial software specialist Pensions & Actuarial Services, aims to help IFAs make a quick assessment of whether income drawdown is appropriate for a client. It can be used regardless of whether or not the IFA specialises in the drawdown market. The facility can produce a fully compliant report and aims to be more competitively ...

  • Fidelity - The Fidelity Triple 2002 Isa

    15 Jan 2002

    Tuesday, January 15, 2002. Type: Oeic maxi Isa. Aim: Growth by investing in European opportunities fund, special situations fund and American fund. Minimum investment: Lump sum £1,000. Maximum investment: £7,000. Catmarked: No. Investment choice: European opportunities fund 33.3 per cent, special situations fund 33.3 per cent, American fund 33.4 per cent. Charges: Initial 3.25 per cent, annual 1.5 per cent. Commissi

  • Financial roadshows to offer themed expertise

    10 Jan 2002

    Training and development firm Summits Afoot is setting up a new company to offer free roadshows for financial services professionals. The Partnership in Planning company will run roadshows around a financial planning theme, offering technical knowledge as well as product ideas. The conferences are sponsored by product providers and admission for delegates is free. A series of well-known industry speakers has been lined up as well as experts such as barristers and health industry ...

  • Firms take stakes in Mortgage Brain

    9 Jan 2002

    Woolwich, Northern Rock, NatWest and Royal Bank of Scotland have each acquired an equity stake in trading platform Mortgage Brain, joining HBoS, Nationwide and Alliance & Leicester.

  • For IFAs, industry is like Cinderella and the ugly system

    10 Jan 2002

    It's the most wonderful time of the year - the pantomime season. I believe our industry has been performing in pantomime for some time. The curtain is up, the stage is set - bring on the players. I say, I say, I say. Did you hear about the insurance company which failed to collect contributions over a 12-month period and reported the client to Opra? The money still sits in the bank account. Did you hear about the insurance company which reported a client to Opra due to non-payment ...

  • Forsyth adds bond fund to range

    9 Jan 2002

    Forsyth Partners, the research and investment management company, has added the Forsyth global bond fund to its product range.

  • Forsyth fixes with global fund

    10 Jan 2002

    Investment research company Forsyth Partners has entered the fund of funds fixed-interest market with a global bond fund. The Dublin-based fund will have a strong emphasis on corporate bonds and emerging market bond funds. It is the first fixed- interest fund to be included in Forsyth's range. The fund will have a narrow fund selection, aiming to initially consist of about 12 funds. Forsyth says it will not exceed 15 funds at any one time. The portfolio will consist ...

  • Framlington - Best of British Isa

    9 Jan 2002

    Wednesday, 9 January 2002.Type: Unit trust Isa.Aim: Growth by investing in UK growth, UK smaller companies funds.Minimum investment: £2,000.Maximum investment: £7,000.Catmarked: No.Investment choice: UK growth, UK smaller companies.Charges: UK growth initial 5 per cent, annual 1.25 per cent, UK smaller companies initial 5.25 per cent, annual 1.5 per cent.Special offer: 1 per cent discount on initial charge ...

  • Framlington - Biotech Isa

    15 Jan 2002

    Tuesday January 15, 2002Type: Unit trust Isa.Aim: Growth by investing in biotech companies and related companies.Minimum investment: Lump sum £1,000, monthly £50.Maximum investment: £7,000.Catmarked: No.Investment choice: 100 per cent invested in biotech and related companies.Charges: Initial 5.5 per cent, annual 1.75 per cent.Special offer: Initial charge reduced to 4.5 per cent for all lump sum ...

  • Framlington offers best of British Isa opener

    10 Jan 2002

    Framlington is starting the Isa season with the launch of its Best of British Isa. The Isa combines two of Framlington's leading UK funds - UK growth and UK smaller companies. It believes the UK represents one of the most robust economies in the world due to low levels of inflation, unemployment and interest rates. Investors can choose the investment for each fund. The standard allocation is 80 per cent growth and 20 per cent smaller companies. All lump sum investors into ...

  • Friends Provident International - Global Portfolio

    10 Jan 2002

    Thursday, 10 January 2002.Type: Sicav.Aim: Income and growth by investing in a choice of Japanese equity, North American equity, global bond, global equity, global balanced, global socially responsible, European equity.Minimum investment: Lump sum $4,000.Place of registration: Luxemburg.Investment split: Choice of Japanese equity, North American equity, global bond, global equity, global balanced, global socially responsible, European ...

  • FSA accused of overdoing things with its six-step financial detox

    10 Jan 2002

    The earlier steps recommend the use of the regulator's own tools such as comparative tables and guides. FSA spokeswoman Kate Bristowe says: "What we are offering is generic information designed to make a financial adviser's job easier. "It is to help consumers do their homework and to understand in principle what products they want before getting specific investment advice."

  • FSA bids to simplify with-profits jargon

    10 Jan 2002

    The FSA is cracking down on how life offices market and provide information about with-profits policies, citing new research which shows that consumers do not understand the products. In the third in a series of papers it has released as part of an overall review of with-profits, the regulator is proposing to simplify the jargon used to describe the products. The paper, Disclosure to Consumers, says investors rely heavily on advisers and the reputation of providers when choosing ...

  • FSA poised to tear polarisation apart with fundamental change

    10 Jan 2002

    The FSA is set to cut the heart out of polarisation, with Aifa director general Paul Smee admitting that radical change is on its way. The changes, which are expected to be announced next week, may even go as far as removing all distinctions between advisers, with tied, IFAs or multi-tied, called the same, claims one life office. Following FSA chairman Howard Davies' repeated efforts to apparently soften up the market for changes late last year, most are bracing themselves for ...

  • FSA to axe polarisation

    14 Jan 2002

    The FSA has this morning announced plans for the abolition of the polarisation regime. It has branded the regime a "major market distortion" which has failed to deliver sufficient consumer benefits to justify maintaining it. The move comes in a consultation document, which begins a further three month consultation process at the end of which the FSA board is expected to implement the decision.

  • FSA to introduce buyers guide

    14 Jan 2002

    The FSA is set to publish a 'buyers guide' to help consumers choose the right financial adviser once polarisation has been abolished.In its consultation paper, 'Reforming Polarisation: Making the market work for consumers', the regulator says the guide will aim to ensure that consumers are 'better informed and more confident to choose an adviser right for them."

  • Fund sales see partial recovery after US attacks

    10 Jan 2002

    Net retail sales of unit trusts and Oeics showed some signs of recovery in November, according to Autif figures. Total net sales reached £1.4bn compared with £1.7bn a year earlier while net retail sales of £591m were well below the previous year's figure of £1bn. But Autif says it is encouraging that November's sales were more than double the figure achieved in the previous month, when total net sales of unit trusts and Oeics stood at £776m ...

  • Fund supermarket providers divided on change

    15 Jan 2002

    Fund manager Fidelity has given the FSA plans for polarisation a qualified welcome although it plans to make a full response later when it has examined the proposals in detail.

  • Halifax backs Equitable's unit fund

    10 Jan 2002

    Halifax is standing by Equitable Life unit-linked policyholders following concerns raised by the National Association of Pension Funds that up to £4bn of their funds could be snatched by creditors if the mutual becomes insolvent. As part of the Halifax deal, the unit-linked funds of Equitable were bought by Halifax in the form of a reinsurance arrangement. The NAPF raised its concerns following a speech by Equitable chairman Vanni Treves at the NAPF conference that the £4bn ...

  • Halifax in good position for regulatory change

    14 Jan 2002

    Halifax says it is not concerned about the FSA's proposals to make major changes to financial advice, including the removal of polarisation.

  • Hargreaves' Dampier defends polarisation

    15 Jan 2002

    Investment IFA Hargreaves Lansdown has issued a detailed criticism of the regulator's proposals for the abolition of polarisation saying the proposed system is nothing but one big loophole.

  • HBoS completes senior management team

    9 Jan 2002

    The asset management arm of HBoS has announced the completion of its senior management team with the appointment of Keith Lovett as chief operating officer.

  • Highly charged

    10 Jan 2002

    This year, I will be celebrating 20 years in financial services. In 1994, I undertook some prudent measures which I believed would provide a stable income instead of the helter-skelter of good month, bad month. Since then, all regular-premium business has been on non-indemnity commission. Furthermore, I have built up over £5m in funds paying trail commission. This has resulted in a fairly steady monthly cashflow, for which I am grateful. What is not so good is that my network, ...

  • HSA pulls a TV ad drive from its hat

    10 Jan 2002

    Healthcare cash plan provider HSA is rolling out a new advertising campaign on terrestrial and satellite television. The campaign starts with brand-building ads on the London Carlton, LWT, Meridian and Anglia terrestrial channels and a selection of satellite and cable channels including Sky. Ads will also appear on interactive digital TV channels, DRTV and Sky Active, where viewers can press a red button on their remote control to request a call back or ask for further information ...

  • Huge relief for stakeholder contributors

    10 Jan 2002

    For those of you who are familiar with the way higher-rate tax relief is now given on personal pension and stakeholder contributions (see my article of September 20, 2001), here is another twist. In the right circumstances, it is possible to effectively obtain 44.5 per cent relief on such contributions made by individuals. What are those circumstances? The contributor must have dividend income which is assessable to higher-rate tax. For small private limited trading companies, this ...

  • IFA joins BoS in carryback initiative

    10 Jan 2002

    Bank of Scotland and IFA Moorgate House have teamed up to help higher-rate taxpayers take advantage of the last chance to use the carry-forward facility in their pension planning. Carry-forward, which allows investors to use up to six years' unused tax relief, disappears on January 31. The Catch-up Personal Pension Plan is for people aged over 50 with minimum unused relief of £50,000. The funds are invested in a self-invested personal pension administered by MH Trustees. ...

  • IFAs 'best placed' to target mass-affluent clients, says KPMG

    10 Jan 2002

    IFAs are most likely to succeed in the wealth management market as banks face serious difficulties in making services for the mass affluent pay, according to research by KPMG. Its study has found that it costs around £750 a year for an IFA to service a client with assets of £50,000. This means banks wanting to break into the market will need to generate £1,500 in fees or commission from clients to maintain the expense ratios they are used to. KPMG says banks ...

  • IFAs faced with reviewing income stream

    14 Jan 2002

    Consumers will be even more confused as to the status of the advice they are receiving if the FSA's proposals on polarisation and commission are adopted, and IFAs may have to divide their businesses to survive.

  • IFAs pile pressure on providers to reprice

    10 Jan 2002

    Providers are coming under increasing pressure from IFAs to reprice their existing pension books before they take their business elsewhere. Confusion still surrounds Prudential's commitment to reprice within 1 per cent. Despite chief executive Mark Wood announcing the intention to reprice in November, advisers are still being told that certain contracts will not be renegotiated. Scottish Equitable is also coming under fire from IFAs for stalling on penalty-free internal transfers ...

  • IFAs say proposals will add to confusion

    14 Jan 2002

    IFAs say the proposals to abolish polarisation and introduce multities will only increase consumer confusion and serve to restrict choice.

  • IFAs slam failure to save polarisation

    14 Jan 2002

    IFAs are slamming the industry for failing to lobby effectively to save polarisation and for not convincing the FSA of the dangers of multities.Wentworth Rose director Philip Rose says: "These proposals will result in a complete free-for-all and redesign of the industry. This shows the total failure of the lobbying campaign to save for polarisation on behalf of the IFA market. The arguments against multities have come to nothing."

  • Independent view

    10 Jan 2002

    Health and pensions are very much in the news, reminding me of a discussion I had with a friend of mine not so long ago whose company had been involved with the purchase of a US manufacturing company. His first impression upon visiting the new acquisition was that there was a surprisingly high number of workers beavering away well into their mid-70s. The reason for this was apparent when he enquired why they would not rather be enjoying their retirement - the greatest impediment to ...

  • Individual stakeholder sales hit record for November

    10 Jan 2002

    November saw the highest number of individual stakeholder pensions sales so far but a severe decline in the number of employer-designated sch-emes, according to the latest ABI figures. Individuals set up 78,197 plans during the month, up from 72,800 in October. Total individual sales now top 567,728 since stakeholder was launched last April. As expected, group plans have dropped off following the October 8 deadline, with only 19,929 employer pensions setting up during November ...

  • Inside Edge:Peter Dornan

    10 Jan 2002

    A happy new year, everyone. And let us hope it is happy although according to the usual band of doom and gloom merchants, we might as well all pack up and head toward the bunker now. I start the year positively. It is an even-numbered year after all. I am a strange sod about this. I always feel that even years have a lot more going for them. As we start 2002, the economic outlook for our industry appears to be surrounded by confusion. Confusion over the UK Government's euro ...

  • Investec Asset Management - Investec Monthly High Income Fund

    14 Jan 2002

    Monday, 14 January 2002.Type: Oeic.Aim: Income by investing in high yield corporate bonds.Minimum investment: Lump sum £1,000, monthly £100.Investment split: 100 per cent in high yield corporate bonds.Yield: 9.75 per cent.Isa link: Yes.Pep transfers: Yes.Charges: Initial 4.5 per cent, annual 0.75 per cent.Special offer: Initial charge reduced to 3.5 per cent.Offer period: Until April 5, 2002.Commission: ...

  • Investment Update

    10 Jan 2002

    New Star Asset Management is offering a 1 per cent discount on all Isa and Pep transfers into its range of Oeics until April 5. The discount will reduce the initial charge on New Star funds to 4.25 per cent from 5.25 per cent. Minimum transfer into each fund is £1,000.HBOS is aiming to become a market leader in the socially responsible investment arena by recruiting three specialist fund managers. Dr Craig Mackenzie, Rachel Crossley and Steve Waygood all join from Friends Ivory ...

  • Investment view

    10 Jan 2002

    I hate this time of year. It is not just that it is cold, generally overcast and the are roads treacherous as often as not but we are also expected to polish our crystal balls and gaze into the future. This is never an easy task. Trying to predict the outcome for 2002 will be particularly hazardous. Reading through some recent comment in the financial pages, I was struck by the absence of forecasters predicting a US recession for 2001. A year ago, the US economy was slowing rapidly, ...

  • Julian Gibbs

    10 Jan 2002

    In a recent survey of all the funds ranked AAA, AA or A by Standard & Poor's and by Feri Trust, the well-known German rating agency, 87.5 per cent of Fidelity's funds were shown to have one of the top three ratings. Threadneedle came next, with 71 per cent of its funds being rated AAA, AA or A, followed by Britannic, Baring, Newton, Invesco Perpetual, HSBC, Lazard, Royal & Sun Alliance and Schroders. The poorest performers in the survey were Lloyds TSB and Axa. Certainly, ...

  • Jupiter's new fund vies with life office bonds

    10 Jan 2002

    Jupiter is looking to go head to head with life offices in the investment bond market, with the launch of a low-risk monthly income fund. The Jupiter distribution fund, to be launched next month, will be a combination of equity income and fixed-interest portfolios. The unit trust will be targeted at Isa investors and will aim to provide a yield of 5 per cent paid monthly and some capital growth. Star income manager Tony Nutt will manage the equity income portfolio, which accounts ...

  • Leggmason Investors - UK Active Income Isa

    15 Jan 2002

    Tuesday, January 15, 2002. Type: Unit trust based maxi Isa. Aim: Income and growth by investing in the UK income unit trust and monthly income unit trust. Minimum investment: Lump sum UK income unit trust £1,000, monthly income unit trust £3,000. Maximum investment: £7,000. Catmarked: No. Investment choice: Client's choice in UK income unit trust and monthly income unit trust. Charges: Initial UK ...

  • Lincoln - Opportunities Trust

    15 Jan 2002

    Tuesday, 15 January 2002.Type: Unit trust.Aim: Growth by investing in small and mid-cap stocks.Minimum investment: Lump sum £500, monthly £25.Investment split: 100 per cent small and mid-cap stocks.Isa link: Yes.Pep transfers: Yes.Charges: Initial 5 per cent, annual 1.5 per cent.Special offer: 2 per cent discount on initial charge for lump sum investments.Offer period: Until April 30, 2002.Commission: ...

  • Lincoln rolls out UK equity growth fund

    11 Jan 2002

    Lincoln Unit Trust Managers is expanding its fund range with the launch of a new UK equity growth trust.

  • Lloyds TSB tops customer popularity survey

    11 Jan 2002

    Lloyds TSB is the most popular bank in the UK due to its flexibility on customers' financial needs, according to research by ICM for software services provider CMG.

  • Lombard International plans to ease IHT burden

    10 Jan 2002

    Lombard International Assurance is offering a trust plan aimed at inheritance tax mitigation by allowing investors to benefit from a gift donation and to receive income. The wealth preservation trust is designed to help reduce or eliminate IHT liabilities by discounting capital. The trust allows the investor to make a gift of capital for IHT purposes. In the meantime, the investor can enjoy access to a preset income stream using tax-deferred withdrawals of up to 5 per cent a year ...

  • Massive commission overhaul planned

    14 Jan 2002

    IFAs will only be able to describe themselves as independent if they operate a new system of payment designed to prevent commission bias. Independent advisers will have to use what the FSA is describing as a "defined payment" system.

  • Meeting will decide fate of packagers' trade body

    10 Jan 2002

    The fate of the planned UK Association of Mortgage Pac-kagers trade association will be decided at a meeting this week. The meeting will thrash out whether there is a need for such an association or whether packagers should throw in their lot with other mortgage intermediary associations. Several packagers, including Pink Home Loans and Network Data, are boycotting the meeting organised by outgoing National Association of Mortgage Brokers and Advisers chief executive Julian Jennings, ...

  • Mellon - Mellon Global Intrepid Portfolio

    9 Jan 2002

    Wednesday, January 9, 2002. Type: Ucits. Aim: Growth by investing in equities and equity-related securities of companies worldwide. Minimum investment: Euro 5,000 or $5,000. Place of registration: Dublin. Investment split: 100 per cent in equities and equity-related securities of companies worldwide. Isa link: No. Charges: Initial A shares up to 5 per cent, annual 2 per cent. Commission: Initial 3 per cent, renewal ...

  • Mellon - Mellon Japan Equity Portfolio

    9 Jan 2002

    Wednesday, January 9, 2002. Type: Ucits. Aim: Growth by investing in Japan. Minimum investment: Euro 5,000 or $5,000. Place of registration: Dublin. Investment split: 100 per cent in Japan. Isa link: No. Charges: A shares initial up to 5 per cent, annual 2 per cent. Commission: Initial 3 per cent, renewal 0.5 per cent. Tel: 0500 660000.

  • Mellon - Mellon North American Equity Portfolio

    9 Jan 2002

    Wednesday, January 9, 2002. Type: Ucits. Aim: Growth by investing in equities and equity-related securities in the United States and Canada. Minimum investment: Lump sum Euro 5,000 or $5,000. Place of registration: Dublin. Investment split: 100 per cent in equities and equity-related securities of companies in the United States and Canada. Isa link: No. Charges: Initial A shares up to 5 per cent, annual 2 per cent. Commission: ...

  • Mellon - Mellon Pan European Equity Portfolio

    9 Jan 2002

    Wednesday, January 9, 2002. Type: Ucits. Aim: Growth by investing in equities and equity-related securities in Europe. Minimum investment: Euro 5,000 or $5,000. Place of registration: Dublin. Investment split: 100 per cent in equities and equity-related securities in Europe. Isa link: No. Charges: A shares initial up to 5 per cent, annual 2 per cent. Commission: Initial 3 per cent, renewal 0.5 per cent. Tel: ...

  • Mellon - Mellon Sterling Bond Portfolio

    9 Jan 2002

    Wednesday, January 9, 2002. Type: Ucits. Aim: Income and growth by investing in sterling bonds and other sterling debt and sterling debt-related securities. Minimum investment: Euro 5,000 or £5,000. Place of registration: Dublin. Investment split: 100 per cent in bonds, debt and debt-related securities. Isa link: No. Charges: A shares initial up to 5 per cent, annual 2 per cent. Commission: Initial 3 per cent, ...

  • Mellon - Mellon UK Equity Portfolio

    9 Jan 2002

    Wednesday, January 9, 2002. Type: Ucits. Aim: Growth by investing in equities and equity-related securities in the UK. Minimum investment: Euro 5,000 or £5,000. Place of registration: Dublin. Investment split: 100 per cent in equities and equity-related securities in the UK. Isa link: No. Charges: Initial A shares up to 5 per cent, annual 2 per cent. Commission: Initial 3 per cent, renewal 0.5 per cent. Tel: ...

  • Mellon in global push

    10 Jan 2002

    Mellon Financial Corporation is rebranding its UK investment house Newton Fund Managers as Mellon Newton. The move is part of a wider initiative by Mellon to incorporate a common visual identity among its asset management subsidiaries. The move will also see London-based Mellon Global Investments and Mellon Global Alternative Investments given new identities incorporating the Mellon logo. Until now, Mellon has been a low-profile name in the UK retail fund management arena but the ...

  • Mistaken benefits

    10 Jan 2002

    I read with interest Paul Rylett's letter on stakeholder (Money Marketing, December 20). What he seems to be saying is that out of all the muddle and forced reduction of income for advisers, at least some good has resulted. Some employers - definitely, I think, a small minority - have started money-purchase schemes of one sort or another into which they are to pay 3 per cent of payroll. As such schemes are exempt from the stakeholder straitjacket, the commission they generate may ...

  • Moore's code

    10 Jan 2002

    There is no question about it - the FSA had a very bad year in 2001. The collapse of Independent Insurance and the deepening crisis at Equitable Life, which resulted in the damning Baird report, rocked the regulator's reputation before it had even officially assumed its powers. Now it is faced with a new challenge - how to respond and repair its battered image. So far, the signs have been encouraging. The early evidence suggests that Howard Davies may have struck it lucky in appointing ...

  • Morley announces change to board

    11 Jan 2002

    Morley Fund Management has announced changes to its board. The appointment of two deputy chief executive officers is intended to free up chief executive officer Keith Jones to pursue plans for global expansion.The appointees are Gerard Quirke and Malcolm Le May. Dan Stannard from Fidelity becomes managing director of international business and Mike Gould becomes head of compliance.

  • Morley fine tunes its themes

    15 Jan 2002

    Morley Fund Management, a sister company of Norwich Union, has introduced the global theme fund, an Oeic that invests in a portfolio of up to 70 global stocks. The fund will not be benchmarked against any index and will have no geographical weightings. It will invest across a range of sectors with stocks being selected on a top-down basis. The fund manager, Michael Jennings, joined Morley in October 2001 after 12 years at Sarasin Investment Management. He will consider ...

  • Morley Fund Management - Global Theme Fund

    10 Jan 2002

    Thursday 10 January, 2002Type: Oeic.Aim: Growth by investing in a global portfolio of up to 70 stocks.Minimum investment: Lump sum £5,000.Investment split: 100 per cent invested in a global portfolio of up to 70 stocks.Isa link: No.Pep transfers: No.Charges: Initial 5 per cent, annual 1.5 per cent.Special offer: Unit price fixed at £0.50 a unit.Offer period: Until February 11, 2002.Commission: Initial ...

  • Mortgages plc taken over in £40m deal

    10 Jan 2002

    Sub-prime lender Mortgages plc has sold 87.5 per cent of its shares to Euro-pean finance company Nikko Principal Invest-ments for £40m in a bid to build its position in the market. It says it has had negotiations with a number of financial institutions in the UK and the US over the past months about raising capital through investment or selling the company outright. Mortgages plc says it decided to accept the offer from Nikko, which established a new holding company to handle ...

  • Multi-tied firms to be directly authorised

    14 Jan 2002

    Multi-tied firms are set to be directly authorised by the FSA under the new rules and will be responsible for the advice they provide.The FSA says IFAs or tied advisers to one firm may decide to change the way they operate and become distributors, advising on products from a range of providers.It says it plans to directly regulate those firms wishing to make this move.

  • NDF Administration - Higher Income & Growth Plan

    14 Jan 2002

    Monday, January 14, 2002. Type: Guaranteed equity bond. Aim: Income and growth by investing in blue-chip stocks. Minimum-maximum investment: £7,000-£1m. Term: Five years. Guarantee: Capital returned in full provided none of the stocks are more than 20 per cent below their initial level. Return: Capital returned in full along with 0.7 per cent a month, 9 per cent a year or 50 per cent at end of term. Interest ...

  • NDF goes for top 10

    15 Jan 2002

    NDF Administration has introduced the NDF higher income & growth plan, a guaranteed equity bond that is linked to the 10 largest stocks on the FTSE 100 index over a five year term.

  • NDF launches new growth plan

    11 Jan 2002

    NDF has launched a new stockmarket linked growth plan offering 100 per cent of FTSE100 growth over the next five years.The NDF Recovery Growth Plan, launched this week, provides 100 per cent capital protection unless the FTSE100 falls by more than 50 per cent over the five-year lifetime of the investment and fails to recover.The minimum investment is £7,000, and the plan qualifies for both Isa and Pep investment.

  • Networks may face huge IFA review claims

    10 Jan 2002

    IFAs could hit their networks with claims running into tens of millions of pounds over the cost of the pension, FSAVC and endowment misselling reviews, according to financial services law firm ProAct Legal. The law firm is writing to thousands of network members offering no-win-no-fee participation in a class action against their networks. ProAct principal Gareth Fatchett has obtained a barrister's opinion that he bel-ieves gives IFAs fresh hope of recovering some of the indemnity ...

  • New bond from Portman

    11 Jan 2002

    Portman Building Society is launching a three-year step up bond paying 4.25 per cent in the first year, 5 per cent in the second year and 6 per cent in the third year.

  • New options aim to add to clarity of Prudence

    10 Jan 2002

    Prudential is offering several new options on its Prudence bond in a move it says will help bring greater flexibility and clarity to with-profits bonds. The options include no initial charges, a minimum 100 per cent allocation rate and an annual bonus for investors who do not make withdrawals. The no initial charge option means investors pay no front-end charge or establishment charge. With-profits investors who make no withdrawals in a policy year will benefit from Pru's annual ...

  • Newcastle relaunches 10 year fixed rate loan

    11 Jan 2002

    Newcastle Building Society is relaunching its 10 year fixed rate mortgage for the third time in less than a year. The latest version is fixed at 5.75 per cent - down from its previous rate of 5.99 per cent - until April 2012 and now comes with a free valuation. Borrowers can redeem the loan without penalty every October until the fixed period expires. Interest is calculated daily.

  • Newcastle relaunches 10 year fixed rate loan

    11 Jan 2002

    NDF has launched a new stockmarket linked growth plan offering 100 per cent of FTSE100 growth over the next five years.The NDF Recovery Growth Plan, launched this week, provides 100 per cent capital protection unless the FTSE100 falls by more than 50 per cent over the five-year lifetime of the investment and fails to recover.The minimum investment is £7,000, and the plan qualifies for both Isa and Pep investment.

  • Norwich & Peterborough seeks court review of watchdog's Tessa decision

    10 Jan 2002

    Norwich & Peterborough Building Society is seeking a High Court review of the Building Societies Ombud-sman's decision that it discriminated against a Tessa investor by paying higher interest on its mini cash Isas. The ombudsman made the decision after a complaint that the society paid higher interest on the Isa than the Tessa between April 1999 and September 2000. It found in favour of the saver and recommended the society should pay compensation. But the society believes ...

  • Norwich Union says proposals must not harm IFAs

    14 Jan 2002

    Norwich Union has guardedly welcomed the abolition of polarisation but says it will be a failure if the IFA sector suffers significant shrinkage as a result.

  • Old Mutual Asset Managers - UK Select Smaller Companies Fund

    14 Jan 2002

    Monday 14 January, 2002Type: Ucits.Aim: Growth by investing in UK smaller companies.Minimum investment: Lump sum £10,000.Place of registration: Dublin.Investment split: 100 per cent invested in UK smaller companies.Isa link: No.Charges: Initial 4 per cent, annual 1.5 per cent.Commission: Initial 3 per cent, renewal 0.5 per cent.Tel: 0808 100 2715.

  • Optimism despite global gloom

    10 Jan 2002

    The UK housing market looks set to remain buoyant in 2002 despite concerns over a global econ- omic slowdown, according to Yorkshire Bank. Its quarterly survey of attitudes towards the UK property market found nine out of 10 people say the economic climate has no effect on their intention to buy a house this year. The number of people who intend to move this year has remained unchanged since September, with one in four saying they will move. Forty-nine per cent are confident ...

  • Outside edge Robert Reid

    10 Jan 2002

    Back in 1999, I found myself speaking at the Canadian Financial Planners conference on the topic of regulation. In the room set aside for speakers, I was checking my slides when another speaker entered the room. She introduced herself, then immediately asked if I minded if she was noisy. My reply was lost on her, as is most ironic humour on the other side of the pond. She then lay on the floor doing stretches and apparently replaying that famous scene out of When Harry Met Sally where ...

  • Pass the portal

    10 Jan 2002

    The news just before Christmas of Skandia's proposed acquisition of Bankhall, via an unbundling of Lynx, is yet another roll of the dice in the distribution stakes. The deal is an attractive one for both Skandia and Bankhall. Skandia gains ownership of a significant IFA services business and the management. That it can do so without having to worry about the "better than best" restrictions for the vast majority of the firms involved, given the directly authorised status of 85 per ...

  • Pavilion Asset Management - Socially Responsible Investment Fund

    9 Jan 2002

    Wednesday, January 9, 2002. Type: Oeic. Aim: Growth by investing in 50-70 UK stocks. Minimum investment: A shares £500, I shares £1m. Investment split: 100 per cent in 50-70 UK stocks. Yield: 1.9 per cent. Isa link: Yes. Pep transfers: Yes. Charges: Initial A shares 5 per cent, annual A shares 1.5 per cent, I shares 0.85 per cent. Special offer: Initial charge on A shares reduced to 4 per cent. Offer ...

  • Pension fund results worse for decade

    9 Jan 2002

    Pension funds posted the worst results for more than a decade in 2001 with returns of —10 per cent, according to performance measurement company WM Company. A typical fund was down 9.6 per cent in 2001, following losses of 1.3 per cent in 2000.The consultancy says funds that switched to bonds, which returned around 3 per cent compared with —13 per cent for UK equities, will improve performance.  

  • Pension members urged to lobby for ethical investment

    10 Jan 2002

    A campaign encouraging occupational pension scheme members to ensure their funds are invested ethically has been launched by anti-poverty charity War on Want. The charity says few of the 10 million UK workers contributing to an occupational scheme know where their money is being invested. Its Invest in Freedom campaign aims to convince members that they should lobby trustees to ensure their funds are invested ethically. War on Want says most pension schemes are run by employee-nominated ...

  • Principal principles

    10 Jan 2002

    Some things in life are enshrined and taken for granted. The same could be said in law. For example, you cannot benefit from a crime. The principles of modern land law and trusts have been fairly static since 1925. With such certainty in life, things should be relatively straightforward. Financial services wants to be different. No wonder the average IFA is confused. Who wouldn't be? Principal and agent The simple rule in English law is that a principal is responsible ...

  • Product Matters

    10 Jan 2002

    Inheritance tax planning is one of the areas of financial planning that has by and large managed to resist the onslaught of low-cost, league table-driven, direct-access solutions for consumers. The two most obvious reasons for this are that the sort of people affected by IHT tend by definition to have the cash to pay someone else to sort out their problems for them and in most cases IHT is too complicated to tackle without professional help. So here is another tool to help IFAs deliver ...

  • Providers will snap up IFAs predicts LIA

    14 Jan 2002

    Providers will be on the warpath trying to snap up IFA distribution as a result of today's FSA's announcement about the future of polarisation predicts the LIA.LIA director of public affairs John Ellis says there will be lots of money on the table as providers attempt to convince IFAs to become multi-tied.Ellis says: "I expect there will be some real attempts to tie IFAs into relationships. There will be some very silly money involved."

  • R&SA pulling out of with-profits sector

    10 Jan 2002

    Royal & Sun Alliance is pulling out of the with-profits market by closing its funds to new business following months of uncertainty over the future of its life business. It says the decision was motivated by "market uncertainty surrounding with-profits and the significant investment in time and capital needed to develop with-profits of the future". The company will no longer offer unitised with-profits opt-ions on new policies but its with-profits funds will stay open for increments ...

  • Reforms will hit consumer access to financial advice says IFAP

    15 Jan 2002

    IFAP has condemned the FSA's polarisation reform proposals, saying they will exclude middle England from quality financial advice.

  • Revolutionary road is rocky

    10 Jan 2002

    This year will bring a revolution in financial services. It will consist of changes to polarisation, a clampdown on past performance and with-profits, Ron Sandler and all his works, a commission shake-down, mergers, takeovers, consolidation and maybe even more closures in lending, fund management and insurance. Fans of evolution and measured reform, such as this newspaper, will be very disappointed. The providers will divide into three camps - proactive, reactive and wait and see. In ...

  • Robin Spencer

    10 Jan 2002

    T here are not too many people who can legitimately claim that the futures of more than a million people once hung on their ability to deliver the goods under pressure. But it would no exaggeration to say that Lovells partner Robin Spencer is among them. As group manager in the international law firm's London office, Spencer was responsible for devising the Equitable Life compromise scheme which represents the stricken life office's only hope remaining solvent. Having made ...

  • Schroder Isa looks to one finite day

    11 Jan 2002

    SCHRODERSINCOME ISAType: Investment trust based maxi Isa.Aim: Income and growth by investing in the Schroder split investment fund.Minimum investment: Lump sum £1,000.Maximum investment: £7,000.Catmarked: No.Investment split: 100 per cent in ordinary shares of the Schroder split investment fund.Types of share: Ordinary.Redemption date: November 30, 2007.Yield: 5.8 per cent.Charges: ...

  • ScotEq Protect points to checking income cover levels after pay rises

    10 Jan 2002

    IFAs should check their clients have enough income protection to cover salary increases following traditional end of year pay reviews, says Scottish Equitable Protect. It says this is particularly relevant for high-net-worth clients who may have received pay rises significantly outstripping inflation. Clients may not have taken up their annual inflation-linked cover option and should be encouraged to review their levels of cover each year. Despite the recent economic downturn, ...

  • ScotProv urges independent windfall advice

    10 Jan 2002

    Scottish Provident is sending letters to former members urging them to seek independent financial advice on how to invest windfall payouts totalling £1.8bn from the life office's demutualisation. ScotProv, which demutualised last August when it was acquired by Abbey Nat-ional, is contacting around 450,000 policyholders to notify them of their individual windfall payouts, which average £4,400. The letters, the last of which will be sent next week, recommend that former ...

  • Scottish mega-trust move

    10 Jan 2002

    Investment trust Advance UK has written to Scotland's biggest investment trusts proposing a mega-merger to form a £7bn-plus Scottish super-trust. Progressive Asset Management, which manages Advance, says a merger would deliver numerous benefits, including a high-profile position in the FTSE 100. It says this profile, along with increased liquidity and access to the best managers, would ensure the fund traded at a premium or at least at net asset value. The letter follows ...

  • Season tickets

    10 Jan 2002

    Do you think there is a danger that split-capital investment trusts have been missold by IFAs in the past? Michael Owen: I believe that IFAs who have sold splits will have explained that they are still risk investments and are not guilty, therefore, of misselling. I am concerned that misselling seems to be a term being applied in some quarters to anything that goes wrong, as opposed to the case here, which I believe to be IFAs genuinely recommending products for the right reasons. Admittedly, ..

  • Skipton bond grows up

    11 Jan 2002

    Skipton Building Society has introduced a five-year guaranteed growth bond that is linked to three stockmarket indices.

  • Skipton Building Society - 5 Year Guaranteed Growth Bond

    11 Jan 2002

    Friday, January 11, 2002. Type: Guaranteed growth bond. Minimum-maximum investment: £2,000-£50,000. Term: Five years. Interest rate: 4.25 per cent gross a year. Charges: None. Return: Up to 50 per cent depending on performance of FTSE 100, S&P 500 and Dow Jones Eurostoxx 50 indices. Guarantee: Capital returned in full along with 22 per cent growth regardless of movement in indices. Commission: ...

  • Skipton launches guaranteed growth bond

    11 Jan 2002

    Skipton Building Society is offering a five year guaranteed growth bond, with minimum growth of 22 per cent and potential growth of up to 50 per cent.

  • Slips on Sipps

    10 Jan 2002

    It was good to see someone promoting SSAS and Sipp investments in Best Advice (Money Marketing, December 13). However, since I am sure a number of exam candidates read these articles, I would be grateful if you would ensure that it is made clear that the tax charge levied by the Inland Revenue on surpluses is now a standing 35 per cent and not 40 per cent. The amount was changed by the Chancellor earlier this year. In addition, the writer failed to mention that any borrowing is restricted ...

  • Slowdown set to follow a record property year

    10 Jan 2002

    After a record year in 2001 for growth in house prices with the highest increases since 1988, Nationwide is predicting a slowdown in activity and growth in 2002. The analysis of the housing market reveals the average house increased in value by 13.8 per cent over the year to £93,544 from £82,544 in 2000 and growth was national, not just in the South-east. Nationwide says 2001 ended with the average price increasing by a seasonally adjusted 1.9 per cent in December, ...

  • Slower property growth says Savills

    11 Jan 2002

    Residential property will only increase in value by 5 per cent this year, less than half the 14 per cent growth in 2001, says broker FPD Savills.

  • Societies' advances hit highest level since March

    10 Jan 2002

    Gross advances by building societies rose to £2.4bn in November from £2.3bn in October, according to figures from the Building Societies Association. Net advances leapt to £693m from £487m the previous month. This figure is well over double the net advances in July at £272m and is the highest since March's total of £821m. The BSA says societies are recovering from their declining share of the mortgage market during the summer as customers ...

  • Swip to launch property investment trust

    11 Jan 2002

    Scottish Widows Investment Partnership is to launch a new property fund next month, offering investors a gross yield of 7 per cent a year.The UK Balanced Property Trust Limited will be an investment trust listed on the London stock exchange. The offer period is set to open on February 11, with dealing commencing on March 20. Swip is looking to raise £150m from the offer, and shares will be sold on a first come, first served basis.

  • Talkback - Is the UK the place to invest this Isa season?

    10 Jan 2002

    Is the UK the place to invest this Isa season? "If appropriate for the client, then, yes, I would say so." Steve Davis, Prince and King Financial Services "It is part of our investment strategy but not our sole strategy. However, we would always spread an Isa investment further than just the UK." Neal Greenslade, Investment & Trust Advisory Services "Yes, because the UK seems value for money at the moment as long as you invest with a good stockpicking fund manager ...

  • The sum of the zeros

    10 Jan 2002

    The recent massive falls in the prices of zeros are without precedent. The initial trigger for the huge sell-off in the sector was essentially the difficulties of one or two highly geared split-capital trusts which saw their assets decline to levels below those acceptable to their bankers. The fall in equity markets after Septem-ber 11 led to several others facing the same predicament. However, the subsequent debate in the press focused on issues such as cross-holdings and gearing. ...

  • The trades of Asia

    10 Jan 2002

    The shaky world economy, allied with inc-reased geo-political tension, continues to weigh heav- ily on equity markets. In recent years, much of the world's loose capital flowed to the US, all of which was gratefully received and much of which was promptly wasted. The flow of global capital is undeniably important to stockmarkets. It is also of great importance to economies - at least for those economies that are open to such flows. However, the pools of capital available globally ...

  • Three steps to home heaven

    10 Jan 2002

    Legal & General has produced a guide for homeowners to explain Government legislation on sellers' packs due to come into force in 2005. The guide explains in three steps what sellers will have to do before they put their home on the market. The first step is to get a mortgage agreement in principle before househunting. This will help househunters know how much they can afford and when they have found a property it will help to speed up a formal loan offer. The second ...

  • Torquil Clark says change is 15 year backward step

    15 Jan 2002

    IFA Torquil Clark has hit out at the end of polarisation claiming it may lead to misselling on the tied side and condemning the move as a 15-year step back in time. But the IFA has welcomed the FSA move to give more clarification on fees at the outset of a transaction.

  • UK focus for Invesco Perpetual roadshows

    10 Jan 2002

    Invesco Perpetual is beginning the Isa season with a series of roadshows starting in Belfast on January 11. The focus will be UK investment, in line with the fund firm's main theme this season. Speakers include UK growth fund manager Stephen Whittaker, high-income and income fund manager Neil Woodford, income and growth investment trust manager Mark Barnett and fixed-income managers Paul Causer and Paul Read. They will visit 14 venues including the Hilton Glasgow, Sheraton Grand ...

  • Virgin and IF clash over ads

    10 Jan 2002

    Lenders Virgin One and Intelligent Finance have become embroiled in a war of words over IF's latest ad campaign which slates its rival. The spat has been caused by ads which went live this month featuring an IF borrower saying: "I made an excellent decision by moving from Virgin One to Intelligent Finance." Virgin One says it is planning to complain to the Advertising Standards Authority and Office of Fair Trading, claiming the ads are factually incorrect and do not comply with ...

  • Widows is first to slash WP bonuses

    10 Jan 2002

    Scottish Widows has become the first life office to admit to huge cuts in with-profits bonuses by slashing rates on some policies by up to 33 per cent. The news comes as Skandia claims with-profits payouts will plummet by more than 60 per cent for policies maturing in the next 20 years. Widows says it is cutting savings plan bonuses because of stockmarket volatility and its desire to preserve its investment freedom by keeping interest and bonus rates in tandem. The move is ...

  • Year of the stockpicker

    10 Jan 2002

    The passing of 2001 has not been mourned by many in the investment world after global economies lumbered towards recession and markets crashed to a four-year low in September. After the second successive down-year, fund managers are crossing their fingers for 2002. There is plenty of optimism. Standard Life Investments believes equity markets will outperform bonds this year and is hopeful that investors will regain their appetite. Morley Fund Management expects the UK to recover ...

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