Edinburgh Fund Managers has established the Classic Pep transfer that provides investors with access to four Edinburgh funds.
This product follows in the footsteps of the Classic maxi Isa and allows investors to choose Edinburgh performance portfolio, Edinburgh fund of funds portfolio, Edinburgh managed growth portfolio or Edinburgh monthly income portfolio funds.
Edinburgh performance portfolio invests mainly in the UK and invests in funds such as Credit Suisse income, Old Mutual Select and ABN Amro UK growth. Edinburgh fund of funds portfolio also has a large number of UK funds but is a less aggressive fund than the Edinburgh performance portfolio.
Edinburgh managed growth is similar to the Edinburgh fund of funds, while Edinburgh monthly income portfolio invests mainly in bonds, with some exposure to equities.
The Classis Pep transfer extends the investment protection facility that is available on the Classic maxi Isa to Pep transfers. The investment protection facility is triggered by the death of the investor. It ensures that the beneficiaries get the higher of 105 per cent of the investment value at the time it was bought or its highest annual valuation.
This product could suit investors who want to consolidate their existing Pep investments under one roof, with the benefits that come with the multi-manager approach such as diversity of fund management groups and continuous monitoring of performance. However, multi-manager funds seem to be this year's trend and many competitors in this field, such as Credit Suiise Asset Management, M&G and Solus, already accept Pep transfers.
According to Standard & Poor's, the Edinburgh performance portfolio is ranked 6 out of 50 funds, the Edinburgh fund of funds portfolio is ranked 8 out of 78 funds, Edinburgh managed growth portfolio is ranked 38 out of 78 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to February 2003. There is no three-year past performance available for Edinburgh monthly income portfolio.