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Innovator Keydata turns to build on the affordable housing plans

Keydata says it hopes to offer IFAs the opportunity to diversify client portfolios with more innovative products.

The firm’s income VCT has just exceeded a total of 8m in subscriptions, having only been opened to IFAs on March 1. It aims to offer low-risk income from wind energy projects and to take advantage of the tax relief on venture capital trusts to provide an annual net income of 8.33 per cent on the net investment.

Head of corporate communications Roddi Vaughan-Thomas thinks the income VCT is typical of Keydata’s approach. He says: “Comm-entators completely under-estimate investors’ desire to look at racy or exciting schemes. If investors are able to quantify the risk, they will invest in just about anything.”

By outsourcing the management of the income VCT to renewables firm Falck, and by outsourcing the management of its Aim VCT to Giles Hargreave, Keydata managing director Stewart Ford believes the company has been able to focus on developing innovative products that respond to a market need quickly.

Ford now sees opportunities in the Government’s affordable housing plans, with the offer of tax breaks for the development of inner city sites. He is looking at a limited partnership scheme to offer retail investors access to potential returns which would otherwise be made by institutional investors in this area.

Ford says: “I do not necessarily get turned on by structured products now. There is obviously a need to constantly monitor what we are doing but the majority of our time is spent devising new products and getting them to market. I would like to see our products appearing in different areas of the portfolio. We constantly get people coming to us with ideas.”

Keydata’s desire to innovate exceeded market demand last year, when it with- drew a Nikkei dynamic growth plan, which offered twice the Nikkei upside capped at 200 per cent.

Clients did not want to re-invest in the Japanese economy, having mostly with- drawn money from such funds. Vaughan-Thomas feels tha the performance of the plan has been a vindication of Keydata’s innovative approach.

Ford believes it is in products like this that the future potential lies. He says: “There is a degree of boredom in the market. People are looking for innovative products to invest in and advisers will eventually get bored of recommending the same products all the time. When that happens, we will be there for them.”

Davis’s discounts

F&C Investment Trust Isa is waiving its initial set-up fee of 50. The transfer-in fee of 25 is also waived. The offers last until May 31.

Glasgow Investment Managers is scrapping the 1per cent initial charge on its Glasgow Isa and the30 charge to transfer an Isa into the Glasgow investment collection until April 5.

Witan Investment Trust is waiving its 1 per cent dealing charge until April 30.

Premier Asset Management is offering a 1 per cent discount on its selector balanced fund of funds from 5.25 per cent to 4.25 per cent until April 3.

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