View more on these topics

Chase Fleming gets dynamic about Europe

Jordan says: “This product has higher than average risk, the charges are also higher than average and also this fund has no track record.”

Flowers says: “The main disadvantage to this fund is cost. It is an expensive investment with a full bid/offer spread and an exit charge, plus a switch charge. If you invested for a year and make one fund switch you would need to have seen a return of around 10 per cent over the year to break even. Also the investment has no regular savings option and finally compensation under the investors compensation scheme is not available.”

Looking at the flexibility offered by the product, Chapman says: “The flexibility offered is reasonable, although I am not in favour of redemption charges.”

Flowers says: “I really do not think much of the flexibility that the product offers. There are plenty of switching options, but at a cost. The minimum investment levels are quite high as well for this type of fund.”

Moving on to Chase Fleming’s reputation in the market, the panel is complimentary. Jordan says: “Its reputation is good in certain areas and it has a consistent fund management team. It also has a good product label with a strong quality brand.”

Flowers says: “Chase Fleming has a very good reputation, although it is swallowing a Fleming / Save & Prosper meal which has caused some indigestion over the last few years.” Chapman adds: “Chase Fleming is thought of quite highly and the Fleming funds have always had a specialist approach to their investment style.

However looking at Chase Fleming’s past performance record, the panel is less positive. Flowers says: “It is difficult to assess the company’s past performance record as their have been several mergers and combinations of fund management teams.”

Chapman says: “Depending on the current economic climate, Chase Fleming’s funds have in the past performed either extremely well or extremely poorly.”

Jordan disagrees. He says: “Chase Fleming’s past performance is very good in most key sectors.”

Identifying the products that provide the main competition, Chapman points to some of the more specialist European funds, while Jordan says: “Competition will come from the Schroder EuroTech fund, the Invesco European smaller companies fund, the Henderson European smaller companies fund and the M&G European smaller companies fund.”

Flowers says: “I think that the main competition will come from specialist European funds, especially from those without benchmarks and sector diversification constraints.”

Moving on to the issue of if the charges are fair and reasonable, Flowers says: “Not really. They are at the top end of normal investment charges, and to then add a 0.5 per cent redemption penalty makes it very unappealing.”

Jordan says: “The annual management charge is a little on the high side. Only future performance will determine if it is a reasonable charge or not.”

Chapman adds: “The charges are maybe slightly on the high side. However offshore funds are usually more expensive than onshore funds.”

The panel regard the commission offered by the fund as being fair and reasonable.

Looking at the product literature, the panel is not that impressed. Jordan says: “The literature is a little glossy with not too much substance at all,” while Chapman says: “The product literature is not very exciting at all for a fund which is supposed to offer plenty of excitement.”

Flowers says: “The pamphlet offers more of the new genre of small words, lots of space around the words, and some meaningless pictures. However it does look high quality.”

Summing up, Jordan says: “This is the kind of fund to use where it is worthwhile to dip your toe into the water.”

Recommended

Credit history lessons

Underwriting versus credit scoring – does it matter? At first glance, one might be inclined to say, who cares? As long as the outcome is the same and an intermediary secures a mortgage offer for their client, does it really matter what process the lender goes through to produce the offer? Unfortunately, the difference in […]

Degrees of latitude

In volatile markets, private investors want access to a product that maximises returns while limiting downside risk. Is such a thing possible? I think it is. Over the last 10 years, the investment management industry has become polarised. At one extreme, fund managers slavishly follow an index, terrified of deviating from their chosen benchmark by […]

L&G launches software package

Legal & General is launching a software system which will allow advisers to sell several products for only one plan charge. Available on compact disk, Protection Choices will enable advisers to offer a range of different products on one application form, with no duplication of personal details. L&G mortgage and protection director Richard Verdin says: […]

Berkeley Wodehouse to split in major revamp

IFA network Berkeley Wodehouse Associates is to undergo a major corporate restructure which will see it split its business and become a plc. As part of the move, the network will divide its business into two subsidiaries, with one offering its members a choice of full network services and the other an ad hoc consultancy. […]

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