View more on these topics

Friends comes up with with-profits alternative

Friends Provident has added a smoothed managed fund with a
protection feature to its fund range for the investment portfolio bond

The UK safeguard optimiser fund is a unit-linked fund that is being
marketed by Friends Provident as an alternative to with-profits
because of the smoothed returns it provides. The protection feature
means 80 per cent of the highest unit price is protected if the
stockmarket falls.

The equity exposure is achieved by investing in the Isis All Share
index tracker fund and this will represent a maximum of 70 per cent of
the overall portfolio. At least 30 per cnet of the overall portfolio will be
invested in cash through the Barclays Global Investors liquidity plus
fund. The underlying fund invests in sterling money market securities
that have a three-month duration.

The equity weighting in the Friends Provident fund will be reduced if
equity markets fall and the amount investment in cash will increase
accordingly. If the markets rise, the cash weighting will be reduced
and the equity content increased.

Cautious investos in the investment portfolio bond who have turned
away from with-profits funds as a result of bonus cuts and negative
publicity may look at this fund as an alternative way to obtain
smoothed returns. The ability to lock in 80 per cent of the highest unit
value may be useful for investors who are worried about the effect of
stockmarket falls on their returns.

The protection feature may make this product lower-risk compared
with with-profits funds. However, relying on an index tracker to provide
growth means there is little scope to outperform the index through
active management and investors are largely at the mercy of an
increasingly concentrated index.


Buy to let is difference as C&G loan share sags while

Cheltenham & Gloucester has lost market share while lending at Bradford & Bingley continues to grow strongly as a result of the lenders&#39 differing attitudes to buy-to-let business. Lloyds TSB&#39s trading update reveals that C&G&#39s market share of net new lending in the third quarter of this year has softened due to continued avoidance of […]

House prices still increasing but at a slower rate

House price rises are continuing to ease, says Halifax&#39s monthly house price index, with a 1 per cent rise in November. This is down from October&#39s increase of 1.4 per cent and November 2002&#39s increase of 1.9 per cent. Halifax says annual house price inflation now stands at 14.1 per cent, down from 16.7 per […]

PI is still half-baked

It was with interest that I read Keith Lewis&#39s letter (MoneyMarketing, November 6) and the responses from Glyn Morris of Magian and Fergus Chappel of Collegiate (Money Marketing, November 20). My case is very similar to Keith&#39s. Even though I say it myself, I am totally “clean” and have been in financial services for 44 […]

Thames River Capital – Garret Fund

Type: Hedge fund Aim: Growth by investing long and short in investment-grade global government bonds and government-related bonds Minimum investment: $100,000. Euros 100,000, £70.000 Investment split: 100% investment-grade government bonds and government-related bonds Place of registration: Cayman Islands Charges: Initial up to 5%, annual 1.5% Commission: Initial 3% Tel: 020 7360 1270


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm