View more on these topics

Christows put ETFs in funds of funds

Christows has converted three offshore funds of investment trusts to
onshore funds of funds that invest mainly in exchange traded funds
(ETFs).

David Franklin managed the three offshore funds and will now run
the onshore funds, which are aimed at the IFA market. As well as
ETFs, Franklin will also hold investment funds and quoted securities.
He can also hold cash to reduce risk when markets are volatile.

The managed growth fund is designed to outperform the FTSE All
Share Index with an emphasis on UK equities and bonds, although
some investment will be made in other markets. The overseas
growth fund is benchmarked against the FTSE World Index (ex UK),
so it differs from the managed growth funds by not investing in the
UK. The worldwide growth fund is different from the other two funds in
that it invests globally across all regions without excluding or
favouring any.

Figures from investment bank Morgan Stanley show the ETF sector
grew rapidly during 2003 as markets recovered, with assets under
management rising globally by 49 per cent to $211bn. Assets under
management in Europe, which still lags behind the US market, was
up by 83 per cent to $19.5bn.

Christows&#39 decision to focus mainly on ETFs may be a wise move if
growth in the market spreads to the UK at the same rate as the US
and other parts of Europe. However, Barclays Global Investors closed
its sector-based ETFs through a lack of interest and demand for
ETFs in the UK is coming mainly from institutional investors, while
retail investors prefer conventional funds.

The Christows funds may appeal only to more sophisticated
investors who understand how ETFs may enhance the diversification
achieved through funds of funds and add a degree of versatility to the
portfolio because they can be traded like shares.

Recommended

How costs went through the roof

Fourteen years ago, I had a dodgy looking flat roof. I went into my local builders&#39 store and sought advice from the expert.I clearly recall that the chap carefully assessed my situation. “Got a leaky roof, guv?”I told him: “Well, yes. Not quite leaky yet but what do you think?”He considered this further and took […]

Aegon widens IFA reach with Aurora deal

Aegon UK has further extended its reach into the IFA world, buying up all of Kent-based Aurora Financial Group.The firm already owned a 9 per cent stake in Aurora which it bought last January but in a deal sealed this week, it has bought out the whole company. It already has majority holdings in five […]

Sipp shape

I have been reading about Government plans to simplify pensions. How will this affect my pension, in which I have £390,000, with around 10 years to go before I want to take benefits?The money is currently invested in a self-invested personal pension and I am thinking about buying a property with the fund. What do […]

Consumer champion Sheila McKechnie dies at 55

Consumers&#39 Association director Dame Sheila McKechnie has died after a long illness.McKechnie, who died last week aged 55, had lived with cancer since 1997 but maintained an active role as director of the CA until last November.She was an outspoken campaigner who took the side of consumers in many confrontations with the financial services business.She […]

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