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Investec manages the situation


Investec Managed Distribution Fund


Income and growth by investing in fixed-income securities and UK equities

Minimum investment:
Lump sum £1,000,
monthly £100

Investment split:
At least 60% fixed-income securities, remainder in UK equities

Isa link:

Pep transfers:


Initial 4.5%,
annual 1.25%

Initial 4%,
renewal 0.5%

Tel: 020 7597 1900

The Investec Managed Distribution fund is an Oeic that aims to provide income and growth by investing at least 60 per cent in fixed-interest securities and the remainder in UK equities.

Franklin&#39s Financial Services partner Neil Franklin complains that the literature probably contains too much information about Alistair Mundy &#45 the lead fund manager &#45 and not enough on why Investec believes he can pick good assets. Franklin asks: “What is the fund&#39s investment process? Why have a lead manager rather than giving responsibility for each part of the portfolio to a named fund manager &#45 for example, Jupiter? What future capital returns might be expected from this fund?”

On the plus side, Franklin feels that the information that is present in the literature is clear. He says: “The cautious structure of the fund meets market needs and could produce high returns in a low inflation environment.”

Despite his earlier complaint about there being too much information on the fund manager, Franklin concedes that Mundy has a good reputation and that this could benefit the fund. He believes the fund could make asset allocation decisions easier for IFAs.

However, Franklin believes one of the downsides in terms of asset allocation is that there is no thinking for the IFA to do. He also thinks the yield is high which means equity exposure is needed to achieve a sufficient level of growth. When asked which products are likely to compete with the Investec fund, Franklin concludes: “Numerous distribution funds and cautious managed funds.”


Suitability to market: Good
Charges: Average
Investment strategy: Average
Adviser remuneration: Average

Overall 8/10


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