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Firms set for form fee switch

Asset managers could rep-lace annual management charges with performance fees as a trade-off for access to multi-ties, says Investec managing director Andy Sowerby.

Sowerby, joint MD of Investec Fund Managers, says firms are almost ready to make the switch to performance fees.

Hedge fund managers are frequently remunerated based on performance. It is only since FSA rules were implemented that performance-related fees in the retail market have been allowed.

Gartmore offers performance-related fees on its focus fund range while Threadneedle will implement them in its Ucits 3 UK limited-issue fund in the new year if the proposals are approved by the FSA.

This will mean that inv-estors will be charged 0.75 per cent if the fund underperforms the FTSE and 1.75 per cent if it outperforms.

Sowerby says: “This is something that has been around in hedge funds for some time and is slowly moving across to the retail market. Now that the rules have changed, managers can be rewarded for excellent performance.

“I would not be surprised if a lot of firms are doing their research into what the effects of changing their charging structure would be – this could be the payoff for getting onto a multitie panel.”


Boyd quits Just Retirement

Just Retirement head of external communications Jim Boyd is leaving financial services for a job with transport company Go Ahead. The former Britannic Retirement Solutions PR is well known for his lobbying in the industry on issues such as telling annuitants clearly about their right to exercise the open market option and the full regulation […]

Campbell to open investment boutique

Former managing director of Jupiter and Artemis Jamie Campbell is set to open a new investment boutique. Campbell will be managing director of Montague Asset Management which is thought to be launching a UK growth fund in the first quarter of 2005. This will be run by former Axa global emerging markets manager Bill Roden. […]

Someone&#39s got their M-Day figures wrong

The Association of Mortgage Intermediaries has kindly given members a 30-step checklist as they get ready for M-Day. But the checklist seems to have jumped to 31. Despite the insistence of policy officer Ben Stafford that there are 30, the Diary still counts that extra one. So, this if for you, Ben: Two weeks left […]

Confusion over status of Network 300 firms

Network 300 members who sign up with Thinc are being offered the choice of joining its multi-tie operation, mortgage arm or becoming a fee-based financial planner. To date, none of the 287 RIs in the network has made a decision on whether to join Thinc. Advisers can join Thinc Financial Planning until general insurance regulation […]

The Great British Break-Off

Despite predictions that a vote to leave the European Union would result in an economic apocalypse, UK equities have shown the market equivalent of a stiff upper lip: bouncing back, keeping calm, and carrying on. Although the road towards Brexit remains clouded in uncertainty, UK equities offer a range of opportunities to investors seeking returns […]


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