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Eye to the future

Gartmore has introduced four multi-manager funds to complement its Gartmore portfolio: balanced strategy fund.

One of the new funds, the Gartmore port-folio: UK high alpha fund, aims for growth by investing in funds that invest mainly in UK equities.

A core and satellite approach means relatively lower-risk core UK funds will be complemented by a smaller number of higher-risk satellite funds. The first step is researching the fund universe to identify which funds are most likely to perform well in the future.

The management team then decides on the best combination of funds to meet the multi-manager fund&#39s risk profile and objectives, ensuring diversity of region and asset class. This will involve the assessment of factors such as the strengths and weaknesses of both the fund and the investment team behind it.

Gartmore will not invest in its own funds to ensure there are no conflicts of interest and says it can negotiate discounted annual management charges on the underlying funds, some of which are not available directly to retail investors.

A performance-related fee structure will take effect after the first 12 months so the annual management charge will increase or reduce to between 1 per cent and 1.75 per cent depending on performance.

Some IFAs like multi-manager funds bec-ause investment decisions are delegated to specialists who can constantly monitor the portfolio but this inevitably involves another level of charges which put some investors off.

A performance-related fee structure recognises that the charges must be justified by the results and may be more appealing than funds which charge a flat fee.


MCCB countdown to M-Day

The Mortgage Code Compliance Board has set out its timetable for the closure of its key activities in the lead-up to M-Day. The changes will take effect on October 31 when the FSA takes on regulating the mortgage industry. From that date, the mortgage code will no longer apply and the MCCB will end its […]

Julian Gibbs

A very interesting new product from Keydata – the defined growth plan – gives 52 per cent growth over five years, equivalent to 10.4 per cent simple interest a year, even if the FTSE 100 index does not go up over that period. The plan also pays out this growth if the FTSE 100 falls […]

Winterthur widening investment options

Winterthur Life is planning to build on its reputation as a specialist Sipp provider to provide more general investment services to its high-net-worth and corporate client base. Chief executive Mike Kellard says he believes that with pension simplification and caps on the levels of savings, there will be demand for other investments outside the pension […]

&#39Technical hitches hold back sales&#39

A shake-up is needed in the way that investment trusts are marketed and distributed, according to delegates at a round table meeting in London last week organised by Money Marketing and Sway. A panel of 24 directors, analysts, technical and marketing experts met at Somerset House to discuss ways to increase the distribution of trusts. […]

Iain Chadwick

The Budget 2015: a brief overview

Following George Osborne’s delivery of his sixth Budget as chancellor and the last of this current parliament, we have provided a brief overview of the initiatives put forward in his statement, focusing on the topics that have an impact upon the pensions landscape, savings, personal taxation and businesses.


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