View more on these topics

Gartmore widens fund of funds

Gartmore has altered its fund of funds, allowing it to invest in funds managed by other investment houses.

The arrival of Bambos Hambi and the rest of the multi-manager team in November last year prompted the decision to rename the existing fund the Gartmore Portfolio: balanced strategy fund and change its remit.

The new fund will hold a set of lower-risk core funds and will boost the return from these by including some high-risk satellite funds. The multi-manager will focus carefully on fund selection, portfolio construction and asset allocation. In terms of asset allocation, the team will draw on the experience of Pete Gale, Gartmore&#39s head of private equity. Gartmore funds will not be selected as the team wants to promote decision making that is completely independent of its own company.

When selecting funds for the portfolio, the team need to understand each fund&#39s aim and how the fund manager is trying to meet this objective. They will assess the strengths and weaknesses or each fund as this will help them blend the funds together into a suitable portfolio which will match the aim of the fund of funds.

The underlying funds are assessed on performance and through qualitative research methods such as meetings with the fund managers. Few investors would have this level of access to managers or the time and knowledge to trawl through the masses of information on various funds. Similarly, IFAs could easily get bogged down in this to the detriment of their other duties.

Like all funds of funds, Gartmore&#39s has a element of double charging as investors pay charges on the fund of funds itself and the underlying funds. However, investors who are put off by this may be keener to invest if they realised Gartmore can negotiate discounts on these fees because they are investing pooled amounts. This means they would not be as expensive as they are when investors make separate investments in funds of their own choice.


Tinkering with trusts

Still on the subject of the pre-Budget report, I turn this week to the proposals for reforming the taxation of trusts. Like it or not, trusts are an important part of the financial planning toolkit. Like financial products, they are an important means to an end – the end being the improvement of the client&#39s […]

GE Life bonds with property mix

GE Life&#39s capital secure investment plan is a capital-protected bond that is linked to the FTSE 100 index and the Halifax House Prices Index over a six-year term. Investors in this product receive their original capital back regardless of how the indices perform and also get 100 per cent of the average growth across both […]

Property fund seeks IFA sales

London & Capital is listing its property fund to make it eligible for Sipp and Ssas investment. It says this is the first in a series of moves designed to increase London & Capital&#39s UK onshore business significantly through IFAs and other intermediaries. The fund has seen a return of 14.75 per cent since its […]

Barclays&#39 IFAs remain weak

Barclays group has seen continued weakness in its IFA division which includes Woolwich IFA Services and Sedgwick. Wealth management business Barclays Private Clients saw a small rise in fees and commission to £802m last year from £794m in 2002. The group says sales of bonds and funds suffered from reduced consumer demand while sales of […]


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