Framlington is to merge its 18m New Leaders and 30m managed portfolio funds into its 49m managed growth fund under chief investment officer Jeremy Lodwick.The New Leaders fund was launched five years ago to invest in the new world economy by investing in seven business sectors – healthcare, leisure, financial services, internet, technology, media and telecoms. Framlington says the fund’s mandate is too narrow to succeed in the current environment and a less specialised fund will provide better returns over the medium term. Fund manager William Calvert will continue to manage the firm’s emerging markets fund. The Framlington managed portfolio is a fettered fund of funds investing in Framlington unit trusts. Fund manager Richard Peirson will continue to manage the financial, managed balanced and gilt funds. Both mergers are due to take place on September 30. Hargreaves Lansdown investment manager Ben Yearsley says: “It seems Framlington is finally admitting that investing in big names for the sake of it does not always work.” German bank West LB which trades under the name Structured Solutions Group in the UK structured market, has started to increase its market share with good value products such as the latest offering, the early bonus plan three. While rival products are having to incorporate two indices or put the original capital at risk to offer att-ractive returns, early bonus plan three is only linked to the FTSE 100 and offers full capital protection if held for the full six-year term. It is structured as a six-year capital-protected inv-estment but if the FTSE 100 has grown by 7 per cent or more on the second anniv-ersary, the product matures and the client gets back their original capital plus 14 per cent growth. The plan is tax-efficient as those who hold the shares directly can offset any growth against their annual CGT allowance (currently 8,500 for this tax year). This is a very underused allowance so most investors will not have to pay tax on the proceeds. If the FTSE has not grown by 7 per cent on the second anniversary, the plan continues for another 12 months. If on the third anniversary, the FTSE 100 has grown by 10.5 per cent or more, the plan will mature with a 21 per cent coupon and so on until the sixth anniversary. Despite the fact that previous cont-racts of this type did not require any growth for the return to be triggered, this is still a good value product within its peer group and worth a closer look. Matthew Woodbridge is bond manager at Chelsea Financial Services
John Howard is to take over as chairman of the financial services consumer panel from October, replacing Ann Foster who has been chair since 2003. Howard is a journalist, broadcaster and solicitor. He has been a member of the panel for four years.
GE Life has increased its enhanced aunnuity rates by 1 per cent across the board. The firm says that according to ABI-sponsored Watson Wyatt research, 40 per cent of annuitants would benefit from buying an enhanced contract but only 5 per cent of invididuals take up their open market option.
Multi-manager T Bailey Asset Management says it is keeping an eye on Oceanic Asset Management’s new Australian resources fund although it prefers to access opportunities in the region through global resources funds.
Confidence in the housing market has remained stagnant for the fourth successive month according to the Woolwich Consumer Confidence Index.The index has now not moved since April, with 49 per cent of homeowners expecting house prices to rise over the next 12 months, compared to 62 per cent in July last year.Woolwich head of mortgages […]
Over the last seven years you have probably read countless articles and had endless discussions about when the Federal Reserve (Fed) is next going to hike. The chart below shows the Fed Funds rate implied by the market at the beginning of each year since 2010. The Fed did finally edge rates higher in December […]
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Axa Investment Managers has reported nearly €50bn (£44bn) in outflows from its joint venture businesses, but has bucked the withdrawals with strong performance in its specialist products. In a note, the asset manager, part of the French Axa Group, says the decline in inflows was to be partly driven by a number of products reaching […]
Barclays has remained quiet on potential plans to re-enter the retail advice market. The bank closed its advice arm, Barclays Financial Planning, in 2011, but last February Money Marketing reported on plans that it would re-enter the market through a combination of online and face-to-face advice. This would build on the success of direct-to-consumer platform […]
As discretionary fund managers continue to grow in assets and importance in the adviser community, Money Marketing research has cast new light on the market’s impact on planning. More than 400 advisers and paraplanners responded to a Money Marketing survey on the DFM market. Ninety per cent of respondents used at least one DFM and […]