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D-day puts funds on a new track

Tracker funds are poised for a “D-day” that could see weightings cut in media, technology tobacco and food as FTSE adopts new criteria for evaluating its indices.

FTSE will adopt “free float” on Friday, which means it will only count share capital freely available for trading in assessing a company&#39s value, no longer including shares not for sale.

Passive fund managers will have to carry out huge levels of trading to replace stocks falling out of FTSE indices.

Gartmore senior fund manager Derek Quinn says: “Friday is D-day. Managers will have to achieve a huge rebalancing. Europe ex UK funds tracking the FTSE will have to replace around 9.5 per cent of stocks that will drop out.”

LM Financial adviser Steve Buttercase says: “The jury is still out on the effect of these changes. If you bought a tracker for cost reasons, stick with it but I think we are moving into a stockpickers&#39 market.”


Punter Southall Financial Management – Gift A Stakeholder

Tuesday, 12 June 2001.Type: Stakeholder pension.Minimum premium: £20.Minimum-maximum ages: From birth-no maximum.Fund links: Scottish Equitable cash, Scottish Equitable mixed, Scottish Equitable global, Scottish Equitable long gilt, Scottish Equitable balanced lifestyle, Scottish Equitable dynamic lifestyle, Scottish Equitable European, Scottish Equitable North American, Scottish Equitable UK equity, Scottish Equitable UK index tracker, Scottish Equitable ethical care equity, […]

Cameron Rowe to undergo restructuring

Kent-based Cameron Rowe is undergoing a re-structure which it says will provide a stronger and more focused base for further development.The IFA company Cameron Rowe IFAs will concentrate on regulated business, while non-regulated business will be transacted by Cameron Rowe Mortgage Services.The restructure also sees the appointment of Interdependence network founding director Stewart Wooles as […]

Sedgwick shuts down mortgage operation

Sedgewick Independent Financial Consultants has shut down its mortgage operation to concentrate on selling stakeholder pensions. Sedgewick is currently in negotiations to outsource its mortgage business to a specialist IFA, but says it has no plans to reopen its own department due to low demand and falling margins. It claims stakeholder will generate higher levels […]

The commission mission is to show the low points

Consumers think commission is too high, according to the Financial Services Consumer Panel, while many IFAs argue commission on some products is too low. These views are not irreconcilable. To deal with consumers first. In stark monetary terms, commission can take a sizeable chunk out of a product. In advisers&#39 defence, distribution is a necessary […]


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