View more on these topics

FundsNetwork systems can’t handle soft closures

FundsNetwork is forcing advisers to remove soft-closed funds from model portfolios as its systems cannot facilitate initial charges.

Following the soft closure of the Aberdeen Emerging Markets Fund in April through the addition of a 2 per cent upfront charge, the platform has notified advisers they will have to reallocate weighting in model portfolios into other funds.

FundsNetwork says clients with existing monthly savings plans can continue to hold the fund if it is outside of advisers’ model portfolios.

A FundsNetwork spokes-woman says: “As a result of Aberdeen levying a 2 per cent initial charge on the Emerging Markets Fund to stem flows, FundsNetwork has had to close the fund, excluding existing monthly savings plans, to new investments.

“This has meant advisers who hold the fund within a model portfolio have had to remove the fund and reallocate the weighting assigned to this fund.

“We are looking into a resolution as the soft closure of funds is becoming more frequent.”

The platform could not disclose how much money is held in model portfolios on the platform.

Several funds have announced soft closures in recent months including First State, which is set to soft close its Global Emerging Markets Leaders Fund from September by implementing a 4 per cent initial charge.

Capital Ideas chartered financial planner Martin Fishburn says: “This is not an action that should be taken as a result of a platform’s lack of functionality. Fund selection decisions should be driven by appropriate research. FundsNetwork looks less attractive as a result of this.”



Cameron rules out Help to Buy for second homes and foreign buyers

Prime minister David Cameron has ruled out foreign buyers or people looking to buy second homes from using the Help to Buy scheme. Speaking in the House of Commons at prime minister’s questions today, Cameron said the Help to Buy scheme will have rules to stop it being used for second homes. The Government had […]

Rob Reid glasses 150

Robert Reid: Making the advice ties that bind

There is something comforting about things happening with some regularity; recently it was my former colleague Nic Cicutti getting into hot water again by taking on the IFA Popular Front For No Change on the Money Marketing website. I say former colleague not as a way to reveal myself as a former tour guide but […]

Bank of England: Gross lending down 6.8% year-on-year

Gross mortgage lending in the first quarter was down 6.8 per cent year-on-year, according to figures published today by the Bank of England. In the first quarter of 2013 lenders advanced £33.9bn, compared with £36.4bn in the first quarter of 2012. Net lending fell 53.8 per cent, from £2.6bn in Q1 2012 to £1.2bn in […]

NAPF appoints Tesco’s Ruston Smith as chairman

The National Association of Pension Funds has appointed Tesco group pensions and insurable risk director Ruston Smith as chairman. Smith will replace Mark Hyde Harrison in the role when his two-year tenure comes to an end at the NAPF annual general meeting on 18 October. Smith has held a non-executive role at the NAPF since […]

Natixis video: Making smarter use of asset classes

Content supplied by Natixis Global Asset Management This video from Natixis Global Asset Management focuses on Active Share. One strategy for the smarter use of equity investments is ensuring you get what you pay for. According to the company, looking at Active Share can give you a better perspective on where performance comes from. Active […]


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 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