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Dampier says IFAs slow to respond to downturn

Hargreaves Lansdown head of research Mark Dampier has warned that IFAs can take years to react to downturns in fund managers&#39 performance, in response to Fidelity&#39s suggestion that industry commentators are not representative of advisers&#39 views.

In a letter to Money Marketing, Dampier says that he has repeatedly seen IFAs take as long as three years to react to performance problems although he concedes that Fidelity is better placed than many to sort out any performance issues.

In last week&#39s Money Marketing, Fidelity managing director Robin Threadgold argued that most commentators are not representative of the broader IFA marketplace and often dispense views on businesses they know little about. In particular, he said commentators often commented on firms&#39 commercial health, insisting they know nothing about how well a firm is doing. Threadgold said: “I do not think these people are representative of the broader IFA marketplace. When they are commentators they sometimes step beyond their field of knowledge.”

But Dampier says his comments were concerned only with Fidelity&#39s performance. He says: “It should be noted that the broader IFA marketplace often continues supporting groups two or three years after investment performance has deteriorated. I have seen this repeated time and again in my 20 years in the industry.”


Hargreaves warns that life offices must change or die

Life companies face extinction unless they overhaul their business models and become management consultants to IFAs, says Hargreaves Lansdown chief executive Peter Hargreaves. Writing in Money Marketing this week, Hargreaves says life companies should follow the example of IBM, which he says reinvented itself as a management consultancy after losing ground as a PC manufacturer. […]

Skandia – Protected Investment Portfolio

Type: Capital-protected bond Aim: Growth linked to the performance of Norwich Property Trust, Fidelity special situations, Invesco Perpetual corporate bond fund, Schroder Mid 250 fund and Merrill Lynch International Investment Fund UK Minimum-maximum investment: £5,000-no maximum, £3,000-£7,000 Isa Term: Five years Guarantee: Maximum protection option – Original capital returned in full regardless of performance of […]

Lender competition results in cross-subsidisation – Miles

The way mortgage lenders compete for new business results in cross-subsidisation from existing borrowers paying standard variable rates to new borrowers taking out discounted variable and short- term fixed rate mortgages according to Miles&#39 findings. He says this practice means that longer-term fixed -rate mortgages appear expensive when compared with discounted mortgages.

Standard optimistic despite plunge in business

Standard Life says it is optimistic abut the prospects for 2004 despite seeing new UK business fall by 24 per cent to £1.08bn in APE in the year to November 2003 from £1.43bn the previous year. Europe&#39s biggest mutual life company says the previous year&#39s figures were swollen by inflows of funds from Equitable Life, […]


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