View more on these topics

Investec’s fee cut receives mixed reaction

Investec Asset Management has waived the initial charge across its entire UK Oeic fund range.

Last week, the asset manager scrapped the initial charge on its risk-rated Managed Solutions range, which holds Alastair Mundy’s Investec Cautious Managed fund and John Stopford’s recently launched Investec Diversified Income fund, and its specialist range, which includes Bradley George’s Investec Enhanced Natural Resources fund and Mundy’s Investec UK Special Situations fund.

ML Financial Associates director Simon Lister says: “I can see more of this happening. When you look at the overall market, there is a trend for more cost efficiencies when it comes to areas such as distribution, advertising and staff, to a degree. This means they are leaner and can pass more on to investors.”

However, Hargreaves Lansdown senior investment analyst Adrian Lowcock notes that initial charges are already often discounted by platforms and questions the merit of scrapping them.

He says: “You would not necessarily want a client to go direct because as a fund management group you would want to focus on fund management. The industry developed the way it did because it effectively outsourced the things that were not fund managers’ core areas of expertise.”

The asset manager itself says the move comes in response to client demands on both the construction of its fund range and the impact of the RDR.

Investec Asset Management UK client group managing director David Aird says: “We completely support the RDR’s commitment to unbundling, and hopefully reducing costs incurred by investors. We believe that waiving our initial fee is good both for investors and for the fund management industry as a whole.”



Aviva sells Russian life and pensions arm for £30m

Aviva is selling its Russian life and pensions arm to a non-state pension fund in Russia for a cash sum of £30.2m. The deal between Aviva Russia and Blagosostoyanie is expected to complete in the first half of the year, subject to approval by the Federal Antimonopoly Service of the Russian Federation. Aviva Russia was […]

RBS reports £5.2bn pre-tax loss

Royal Bank of Scotland made a pre-tax loss of £5.2bn in 2012, compared to a £1.2bn loss in 2011. This is due in part to the significant sums the bank set aside for the misselling of payment protection insurance and interest rate swaps. Last year, RBS made a further £450m provision for PPI misselling, bringing […]


Incoming PFS chief Richards eyes closer ties with Apfa

Incoming Personal Finance Society chief executive Keith Richards wants the organisation to work closer with the Association of Professional Advisers to lobby effectively on behalf of the adviser population. Richards is due to take up the role in May after announcing he is leaving network Tenet Group earlier this month. Speaking to Money Marketing, he […]


FSA warns on ‘systemic misselling’ from poor DFM risk mapping

The FSA has warned advisers using DFMs run the risk of “systemic misselling” if their clients’ risk profiles are not correctly mapped against those of the outsourced investment solution. Speaking at a Defaqto DFM conference this week, FSA technical specialist Rory Percival said the regulator has seen evidence that some advisers are not ensuring the […]


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