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&#39Banks&#39 funds perform poorly&#39

IFA BestInvest claims the performance of investment funds offered over the counter at high-street banks is well below average.

It looked at the record of 39 high-street banks&#39 funds in the UK all companies sector over the past five years and found they suffered poor performance.

It found investors had only a one in 10 chance of choosing a top-quartile fund and a 40 per cent chance of languishing in the third quartile. Over 60 per cent of banks&#39 funds underperformed the sector average.

BestInvest says the huge marketing advantage held by the banks means the public often look no further when choosing an investment.

The IFA claims the banks know who has cash to invest and cross-sell on statements, in their branches and through websites. But this promotion does not equate to strong performance.

BestInvest deputy managing director Jason Hollands says: “Banks have made such a hash of actively man-aging money that many of them have thrown in the towel and are focusing on index funds or contracting out investment management to other companies. Clearly, investors could do much better by taking independent advice and selecting from the entire market.”


Annuity friendly raises £16m to back expansion

Retirement specialist the Pension Annuity Friendly Society has raised £16m of new capital, which will help its expansion into new markets and broaden its retirement planning product range. Pafs hopes to increase its presence in the long-term care market as well as enter the inheritance tax planning arena in addition to making forays into overseas […]

Tiner says life offices have overpaid bonuses

FSA director John Tiner has criticised life insurance companies for overpaying bonuses on with-profits policies, claiming this raises consumer expectations and could be unsustainable. Speaking at a CII Breakthrough lecture last week, Tiner said he is “worried about the expectations of policyholders”. Tiner has been given the job of implementing the recommendations of the Baird […]

Nationwide says buy fixed loans before rates rise

Nationwide Building Soc-iety is urging borrowers to snap up fixed-rate mortgages as it believes rising money markets could shorten the shelf life of the cheapest deals. It says borrowers should look at locking themselves into a fixed-rate mortgage before the current upward trend in the long-term cost of money forces lenders to withdraw their best […]

Lincoln – Personal Pension Direct

Monday, November 19, 2001.Type: Unit-linked personal pension.Minimum premium: £30 a month for existing customers, £50 a monthfor new customers, £2,000 lump sum.Minimum-maximum ages: 18-75.Fund links: UK capital protected, money, unitised with profits,index-linked gilt, UK fixed interest, property, cautious managed,balanced managed, Schroders, Framlington, select managed, UKequity income, UK equity growth, aggressive managed, international,Perpetual, green, UK capital […]

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Guide: how to… audit your auto-enrolment scheme compliance

As the Pensions Regulator starts to bare its teeth and the changes mentioned in the Budget and Queen’s Speech start to come into force, it is essential that you understand your scheme and the processes you need to undertake to ensure it remains compliant. Our second re-enrolment guide looks at how to audit the key areas of your auto-enrolment scheme.


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