Credit Suisse multi-manager co-head Gary Potter believes the drive for increased performance and tax efficiency will lead to a convergence of retail and institutional client types in multi-manager and fund of funds over the next few years.Potter said: “We will see a gradual coming together of client types. There will be a blurring of boundaries, with high-net-worth bankers and small pension fund managers all looking for higher performance. Five years ago, there was a distinct retail business for IFAs. The fund of funds product has been very tax-efficient and now we are seeing private banks and stockbrokers recognising that a fund of fund structure makes the tax situation easier. “You have institutional business on the left, retail on the right and stockbrokers in the middle, all reorganising to the multi-manager solution. It is pervading the whole spectrum.” Gartmore fund manager (multi-manager) Marcus Brookes said he expects many multi-manager propositions to start employing more non-traditional assets such as property, offshore funds and hedge funds. Christows head of fund research Dan Kemp said he thinks clients will become more familiar with the multi-manager proposition. He said: “There will be much more understanding from our clients about what we do. There will also be greater differentiation, with a lot more products and choice and a lot more players in the space.” Jupiter director of multi-manager John Chatfeild-Roberts said some multi-manager outfits would not survive the next five years due to the increasing need to scale up. He said: “Artemis decided it did not have enough scale two years ago. If you look back three or four years, £100m may have been enough but not now.”
Property has become the increasingly favoured asset class for many investors over the last few years and money has been pouring into UK property funds.
iFunds, a franchise of Raymond James Investment Services, has introduced a global growth fund of funds investing in exchange-traded funds. The MFM iFunds ETF global growth fund provides exposure to single-country or regional ETFs that are weighted according to volatility rather than market cap. The fund, administered by Marlborough Fund Managers, has a £1,000 minimum […]
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 […]
Seventy-one per cent of consumers do not choose the protection insurance most suitable for their circumstances and only 13 per cent select the product offering the best level of cover. Research from Lifesearch, which surveyed 1,001 people, found that in the 18-29 age group, only 12 per cent of respondents buy the product which best […]
Jelf Employee Benefits has given its initial thoughts on the chancellor’s 2014 Autumn Statement. The company is seeking to isolate the sections of the speech (and the supporting document) that are relevant to the employee benefits debate. The first such area is pensions related.
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