View more on these topics

Grenfell returns with managed risk fund

Morgan Grenfell Asset Management is returning to the retail market with a protected unit trust modelled on its institutional managed risk equity fund.

The All-Weather equity fund aims to provide an element of protection to investors who are seeking exposure to equities but are uncomfort-able with the perceived risk.

But the biggest challenge will be for Morgan Grenfell to win the confidence and support of IFAs stung by the Peter Young affair of September 1996.

Fund manager Young was sacked by Morgan Grenfell for gross misconduct after irregularities were discovered in two European funds – European growth and Dublin-listed European capital growth.

Morgan Grenfell Investment Funds managing director Frances Davies says the group deliberately waited until compensation was fully paid before launching its first fund since the Young scandal.

She says: "The Peter Young issue was confined to him and three unit trusts. The compensation is out the way. Let&#39s get the show back on the road. IFAs want to support Grenfell again and this has given them a product to latch on to."

Fund manager Shaun Coleman, who manages the existing pension version of the new fund, says Morgan Grenfell is optimistic about the UK equities market for 1998 but there is a big demand for protected investment products.

The fund will invest 98 per cent in equities and 2 per cent in derivatives which will provide an element of protection by limiting stockmarket falls.

Launch period for the fund is February 9-20.

Pep investors will receive a 2.25 per cent discount on the standard initial charge of 5.25 per cent. Annual management charge is 1.5 per cent.

Commission is 3 per cent initial and 0.5 per cent rene wal for both the Pep and unit trust.


CML chairman apologises for predicting two conversions

Council of Mortgage Lenders chairman John Massey has apologised to the Nation wide and Bradford & Bingley building societies after saying they would not survive as mutuals. Massey, who was appointed chairman in January, predicted that Nationwide and Bradford & Bingley would be forced to convert to banks in the next few years. His comments […]

My network does not make me less independent

I am prompted to write in defence of IFA networks. I have read that the popular network practice of employing provider panels is making network members “less than independent”. As a member of the Interdependence network, the suggestion seems like nonsense to me. Interdependence do operate a panel system. However, in 99 per cent of […]

DMB&B wins £1m KMC campaign

Specialist lender Kensington Mortgage Company has picked DMB&B Financial to run a £1m ad and brand-building campaign. KMC is planning to run ads in the consumer and trade press and on radio. It is also planning a direct-mail campaign and brand identity work. The campaign, expected to be worth at least £1m in 1998, will […]

IFAA threat of another judicial review

The IFAA fears that the FSA&#39s proposals will invalidate IFA&#39s professional indemnity insurance. Its main objection is that the proposed actuarial assumptions for assessing losses are based on economic conditions of 1998.

Why your clients need some tough love

In any relationship that matters, professional or personal, you should be upfront with someone if you think they’re making a decision or doing something they might later regret. Being honest with someone and having their best interests at heart, however hard the message, is key to building trust in any relationship. So how does this […]


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