View more on these topics

Fund firms beating life offices on effective ads

Life offices are spending up to five times more on advertising their investment funds than pure fund managers but with sales typically around five times smaller.

Figures released in the UK fund industry review 2001 show life office ad spends on funds account for as much as 1 per cent of gross sales while fund managers are on average spending around 0.1 per cent.

Prudential spent £4.1m on advertising its unit trust and Isa business in 2000 but took just £442.9m in sales. At the opposite end of the scale, Threadneedle spent £1.6m on its 2000 ad budget, bringing in sales of £4.1bn.

Pearl, Royal & Sun All-iance, Legal & General, Cler-ical Medical, Norwich Union and Standard Life are among the top 10 least effective advertisers.

The most effective of the big fund managers was Baring Asset Management, which turned over £2.5bn in gross sales from an ad budget of only £142,534.

The review, which is the first to produce comprehensive gross sales figures for last year, shows that pure fund managers still dominate the UK investment market. The top 10, led by Fidelity, Threadneedle and Gartmore, are all pure fund management houses.

But while the pure investment houses have the biggest monetary sales, the banks, life offices and building societies fare better in terms of accountholders. Scottish Widows, Legal & General, Halifax, Barclays and Norwich Union all make it into the top 10 in terms of unitholders, demonstrating their strength at the bottom end of the market.

Aberdeen took the leading share of the IFA market last year, accounting for 9.65 per cent of all intermediary sales.

Henderson, Threadneedle, Fidelity and Newton complete the top five, with boutiques such as ABN Amro, SG Asset Management, Artemis and Liontrust all within the top 20.

Ptarmigan media director Hugh Perkins says one reason for the low effectiveness of life office advertising is that they target a more general market.

He says: “The specialist fund managers see the personal finance sections as a shop window, whereas the life companies tend to spend outside. They have tended to try to convert everyone to try and buy their funds.”

Recommended

House price rises &#39unsustainable&#39

House prices are rising at an unsustainable rate but show no signs of slowing down, Nationwide Building Society is warning. The lender’s latest house price index shows property prices have shot up 10.9 per cent since last year, rising 1 per cent in July. Although last month’s figure marks a slowdown from June’s growth of […]

CML warns repossessions may rise

The number of borrowers with mortgage arrears and having property repossessed has fallen this year, according to the Council of Mortgage Lenders. The CML welcomes the news but it fears uncertain economic prospects mean the numbers could rise. Lenders took 10,460 properties into possession during the first half of the year – 1.5 per cent […]

Regulation by risk

The FSA is focusing on a radical new risk-based approach to supervising firms to apply resources to the areas we believe pose the greatest risk to statutory objectives. We will be seeking to identify areas of concern. The risks will relate to the FSA&#39s four statutory objectives of market confidence, consumer protection, public understanding and […]

Gartmore&#39s AlphaGen Pictor fund tops $50m in first month

Investment house Gartmore has announced that its AlphaGen Pictor fund now tops the US $50m mark a month after launch. Managed by Chris Palmer and Seok Teoh, it is a non-directional long/short Pacific and emerging markets equity hedge fund and is the latest addition to Gartmore’s AlphaGen range. Its Japanese equity hedge fund Hokuto, launched […]

Identifying best-in-class UK stocks — Mark Martin, Neptune UK Opportunities Fund

FE Alpha Manager Mark Martin assumed management of the multi-cap UK Opportunities Fund at the beginning of February. As manager of the highly regarded UK Mid Cap Fund, Martin has begun restructuring the new portfolio to focus on our very best UK stock ideas from across the FTSE All-Share Index. In this video, update Martin addresses:

– Themes informing the UK Opportunities Fund
– The multi-cap structure of the fund
– UK equity valuations

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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 advice.

    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

    Email: customerservices@moneymarketing.com