Some bond fund managers using new investment flexibility available under Ucits III are putting money at risk because they do not have the necessary skills, says Credit Suisse multi-manager co-head Gary Potter.He is concerned that many managers do not have the knowledge to use the new tools, such as credit derivatives and stock-shorting and are inadvertently raising the risk profiles of funds. Potter said the issue is more of a problem in the bond sector where take-up of Ucits III has been greater. He said: “The new powers available under Ucits III are good tools to have but they are a completely different skill set. There are some managers, particularly in the bond sector, who do not know how to use the new powers and are just playing with them.” “We have to make sure fund managers have mastered the skills and investors understand that new rules do not automatically mean better returns.”
McCarthy surprised many in the industry by seeming to morph into industry analyst Ned Cazalet while making a speech to pension industry leaders at Gleneagles. He called for urgent changes to the financial services distribution model, which he says is failing consumers, providers and advisers.
BlackRock completed its merger with Merrill Lynch Investment Managers last week. The company, which has $1tn of assets, will be called BlackRock MLIM. Changes to MLIM’s UK fund range are expected to be announced shortly.
Standard Life has set aside £100m to plug losses caused by falling persistency rates and people cashing their policies after netting demutualisation windfalls. Standard Life says its demutualisation has delayed the impact of A-Day on its pension business and it expects increased pension lapses caused by A-Day to continue until April 2007. The firm is […]
Lenders are being warned to go for steady growth in the offset mortgage or risk the market being shut down. The Treasury is keeping a close eye on the market as savings used to offset interest on a mortgage do not have to be taxed at present, although the Government may close the loophole if […]
With 23 auto-enrolment compliance notices issued by the Pensions Regulator, and an evolving legislative landscape meaning previously compliant schemes may now be in breach of regulation, now is the time to think about auditing your auto-enrolment scheme. Johnson Fleming is hosting a webinar on 9 October at 11:00 on how to audit your scheme to ensure compliance, avoid breaches and fines and overcome data issues.
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The Financial Services Compensation Scheme has declared self-invested personal pension operators Stadia Trustees, Brooklands Trustees and Montpelier Pension Administration Services in default. The lifeboat fund has received around 150 claims for compensation relating to the three businesses. Those claims relate to how the businesses set up, operated and administered Sipps through which people invested in […]
The Department for Work and Pensions has confirmed it will not change the pensions triple lock and will explore bolstering the powers of The Pensions Regulator in the forthcoming legislative period. The DWP published its “single departmental plan” yesterday, which sets out five objectives it is working towards over the next four years. It has […]
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