View more on these topics

Hedge funds to take central role in investment

Hedge funds will become a mainstream force in UK investment and should be regarded as a fourth core asset class, according to Henderson head of marketing Sarah Speake.

Speake says: “From the research we have seen, by 2005, hedge funds will represent 14 per cent of funds under management in the UK.”

The prediction comes as product providers look for ways of lowering the barriers to entry which prevent the common use of hedge funds in the retail market.

Speake believes the regulator will look at ways of making hedge funds more accessible for retail customers, in spite of the FSA&#39s warning earlier this year on the risks of investing in what it termed “exotic” hedge fund Isas.

Henderson anticipates retail growth in hedge funds will be generated by adopting the fund of funds approach.

City Financial Services director Mike Lightfoot says: “We have seen hedge funds offshore become mainstream very quickly over the last three years. In the UK, with gilt yields low and as with-profits faces increasing scrutiny, hedge funds will be a natural beneficiary of people wanting a third way when looking for a market neutral strategy.”

But Hargreaves Lansdown head of research Mark Dampier says: “I think there is still a long way to go to make hedge funds mainstream, as no one has yet made a highly marketable retail hedge fund product. Most IFAs will not want to get involved with hedge funds because of the business risk to them.”


Halifax and BoS on target for September merger

Halifax and Bank of Scotland expect to merge on September 10 subject to shareholder approval. Bank of Scotland will hold an emergency meeting to consider ratification of the merger on July 24, with Halifax holding its EGM the next day. Shareholders will be sent voting packs next week.The new company will be called HBOS, and […]

Paymentshield – FreeFirst

Wednesday, 13 June 2001.Type: Cafeteria style protection product covering accident, sicknessand unemployment cover, life cover, critical illness cover andbuildings and contents insurance.ASU MORTGAGE PROTECTION PLANSMaximum benefit: £1,500 or 65 per cent of salary whichever isless.Benefit payment term: 12 months.Deferred period: 30 or 60 days.Premium: 30 day deferred period – £3.95 per £100 of cover, 60 […]

Sedgwick shuts down mortgage operation

Sedgewick Independent Financial Consultants has shut down its mortgage operation to concentrate on selling stakeholder pensions. Sedgewick is currently in negotiations to outsource its mortgage business to a specialist IFA, but says it has no plans to reopen its own department due to low demand and falling margins. It claims stakeholder will generate higher levels […]

Gain is Revenue&#39s loss

Last week, I looked at the Enterprise Management Incentives scheme, the latest Government tax incentive which is aimed at encouraging wider share ownership. Now let us consider the following example of how the EMI could work. An employee is granted an EMI option over a total of 100,000 shares when the market value is £1 […]


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