View more on these topics

&#39Fund supermarkets set to save IFAs 20%&#39

IFAs using fund supermarkets could cut their costs by up to 20 per cent, according to a report from Cerulli Associates.

It predicts IFAs are set to account for more than a tenth of all assets in continental European fund management by 2005 as the power of the banks is eroded.

The report, which will be published later this month, says fund supermarkets have the power to help IFAs with increasing pressures on their margins. By taking care of time-consuming and sometimes costly functions, such as reporting, administration, execution and custody, Cerulli says supermarkets can significantly boost IFAs&#39 profitability.

Cerulli says IFAs are already adopting new practices by no longer relying on transactions for revenue. Instead, as the internet has commoditised transactions and information, IFAs are trying to differentiate themselves on the basis of the advice that they provide.

The report says supermarkets are poised to make significant inroads into fund distribution in Europe, with Cerulli predicting they will account for up to 25 per cent of net new inflows by 2005.

The report points out that across continental Europe, the proportion of funds under management attributed to banks has fallen from 78 to 74 per cent since 1997 while IFA sales have increased from 6 to 8 per cent. In the UK, IFAs are already established as the dominant fund distribution channel, accounting for more than 40 per cent of fund sales.

Cofunds head of sales Rodney Aldridge says: “In the short period of time since we have launched, we have seen a very strong take-up of the supermarket concept. We believe it is already becoming a significant distribution channel for fund managers in the IFA market.”

Recommended

Select plan from Friends Provident

Tuesday, 8 May 2001.Friends Provident Select Protection PlanType: Cafeteria style protection plan covering critical illness, income protection, life and houseperson&#39s cover.CRITICAL ILLNESSMinimum premium: £7.50 a month, £75 a year.Maximum cover: £1m.Illnesses covered: Alzheimer&#39s disease/pre-senile dementia before age 65, angioplasty, aorta graft surgery, bacterial meningitis, benign brain tumour, blindness, cancer, coma, coronary artery by-pass surgery, deafness, […]

Clerical recruits to keep pace with business boom

Clerical Medical&#39s UK new business figures for the first quarter of this year are up by 63 per cent to £109.9m from £67.4m in annual equivalent premiums. Worldwide new business was up by 62 per cent on the same period last year to £136.7m from £84.3m. The rise in business covers all markets across life […]

Simon Ewan

As the man charged with the task of putting SEI Investments on the UK intermediary map, Simon Ewan could be forgiven for being a little apprehensive. With more than 150 retail investment houses and over 2,000 retail funds in the UK today, IFAs are not only spoilt for choice but are also quickly becoming sceptical […]

IFonline launches MPPI service

IFonline is launching a new broker service for mortgage payment protection insurance that allows applications to be made without re-keying the data for the mortgage application.The MPPI system follows IFonline&#39s incorporation of a solicitor referral system last month.IFonline sales and marketing director Mike Douglas says: “IFonline is striving to provide useful tools for intermediaries to […]

Greece: the sideshow continues

Artemis managers James Foster, Mark Page and Laurent Millet comment on the Greek deal, describing it as “just another fudge” getting in the way of bigger developments in China, the UK and the US. To read the full article click here.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com