Advisers have criticised Friends Provident’s UK special situations fund which has been launched as an alt- ernative to Fidelity’s special sits split.The new life and pension fund aims to replicate the geographical exposure of Fidelity’s original fund and is made up of three extern- ally managed funds – Merrill Lynch UK special situations fund, M&G recovery fund and Artemis global growth fund. The Merrill Lynch and M&G funds will each make up 42.5 per cent of the port- folio with Artemis making up the remaining 15 per cent. Hargreaves Lansdown head of research Mark Dampier says he thinks it is a strange move for the life office and asks why advisers and execution-only brokers would pay to use the fund when they could just do it themselves. He says “This looks to me like marketing spin on the back of Fidelity. I cannot get thrilled about it. If they had done something like Norwich Union and Schroders, which was an innovative solution, then I would have applauded it. It just loses me.” The fund is initially only available to Fidelity customers wanting to switch out of its special sits fund. The switching service is free. Annual charges are fixed at 0.75 per cent. The fund will be made available to other investors in the final quarter of this year. It is in the UK All Compan- ies sector with at least 80 per cent invested in UK company shares and the rest invested overseas. Chelsea Financial Services bond and VCT manager Matthew Woodbridge says: “It is a slightly odd move. It looks to be a watered-down fund of funds and is unchartered territory really. I do not know who would buy it when they could just do it themselves.” Friends Provident man- ager of the fund strategy and selection group Marc Haynes says: “We do not take margin on the fund product on the pension side. “We are adding value by doing all the hard work for them with monthly rebalancing and we have negotiated it so that there are no additional costs of bolting the funds together.”
I have to say that the idea of limited advice seems to me to be an all but guaranteed recipe for creating a great deal of problems for everyone that will far outweigh any benefits. Why would any adviser who is genuinely seeking to provide a comprehensive and professional financial planning service have any interest […]
Keydata has introduced yet another innovative product. Its new income property bond pays 7 per cent a year or 1.75 per cent quarterly for a fixed term of six years.
Of all the unit trust sectors, it has to be said that America remains the most disappointing. Whereas most of us can reel off our favourite fund managers in Europe, the UK and the Far East, it becomes so much harder in America where finding consistency of performance is near impossible. One fund which has […]
Retention of the second state pension is a major sticking point in the Government’s Pensions White Paper proposals and will mean continued inequality between high and low-earners, according to the Pensions Policy Institute. In its response to consultation on the White Paper, the PPI says that measures such as reducing the number of qualifying years […]
On Friday, the Department for Work and Pensions published its guidance for employers on using the new Fit for Work (FfW) service to help ill employees return to the workplace. It also includes more details on the tax exemption for medical interventions that commenced on 1 January 2015.
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