ABN Amro Asset Management is offering a range of its capital-protected lifecycle funds into the UK.The six funds, which have been available in Canada and Europe since 2000, each have a predetermined lifespan and look to help investors save for a particular life event. The Luxemburg-domiciled funds will invest predominantly in equities in the early years of the product before gradually migrating into bonds and cash to reduce risk as the product approaches maturity. The funds are designed to deliver a guaranteed amount at maturity, which can rise as any capital gains are locked in at the end of a month, raising the guaranteed amount. ABN Amro director of UK insurance John Townley says: “The big difference with traditional lifecycle funds is that we offer an explicit guarantee and lock in all the investment gains. Throughout the investment period, the product will at least return the guaranteed value.” “The consumer gets a flexible solution to financial planning. The total expense ratio will be capped at 1.8 per cent, which includes all taxes and charges.”
Positive Solutions is looking to set up a fund platform by the end of March 2007.Positive Solutions advisers use all the major platforms but the firm says it aims to create its own proposition.Executive chairman David Harrison says a truly independent adviser cannot favour a single provider-owned proposition but does need access to an open […]
The decision by the Monetary Policy Commitee to increase interest rates by a quarter per cent should act as a wake up call for the UK consumer so start saving and consult their adviser, says IFA Promotions.
The Office of Fair Trading has upheld Aifa’s complaint that market average commission rates included in the menu are wrong but says it will not be taking action against the FSA.Aifa complained to the OFT in April 2005, arguing market average commission rates included in the menu were having an anti-competitive effect on the market […]
Last weekend’s excellent Radio 4 programme Inside Money highlighted the inadequate level of help and protection given to people suffering from identity theft.
The chart below demonstrates the change in US 10-year Treasury yields in the run-up to a Federal Reserve (Fed) hike, and what then happens in the weeks afterwards. This covers the 70 Fed hikes over the past 37 years. In the run-up to a Fed hike, US yields tended to rise. This is no surprise, […]
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Offsetting the cost of advice this way would benefit clients and advisers alike One of the multiple barriers to better take-up of financial advice is that some people are unwilling or unable to meet the upfront cost. In response to this, the government has allowed people to take small chunks (three lots of £500) out […]
Fund managers like to trade off having a unique style. There thousands of funds out there to choose from – the question I often hear from advisers is: what makes this person different? Sometimes this can be a really tough one to answer. “We invest for the long term” is all fine and good, but […]
With rising costs and an increasingly tough regulatory market more advisers are looking to outsource their investment proposition, with many leaning towards discretionary fund managers. But while the number of advisers using DFMs is on the up, overall satisfaction with them has dipped. According to a recent survey by financial information firm Defaqto, 74 per […]