View more on these topics

io fund gets inflation proofed

io Investors has unveiled the io inflationplus fund, an Oeic fund of funds that aims for income and capital growth of 5 per cent above UK inflation.

io Investors chose the Retail Prices Index as a benchmark because a direct link enable the fund&#39s returns to outpace inflation. Inflation erodes purchasing power over time and io investors think it is more difficult to monitor this using traditional bond and equity indices.

The fund will achieve its objective by investing in funds which in turn invest globally in corporate and government bonds and equities. It will be managed by PSolve Asset Solutions, a sister company of io Investors. Psolve is an investment adviser that creates tailored investment portfolios for company pension schemes, charities, local authorities, financial advisers and insurance companies.

Psolve is headed by Mike Faulkener, who has 11 years&#39 experience in consulting an asset allocation. He will be assisted by Carol Allison who has eight years&#39 experience in asset allocation and manager research.

Faulkener and Allison will take into account economic conditions, market valuations and preservation of capital when deciding how much should go into each asset class. They will then screen the universe of fund managers. Those that pass the initial screen are interviewed during company visits and this is followed by telephone interviews to establish which managers are best at managing which type of asset or region. Once selected, the managers are constantly reviewed along with the overall asset allocation strategy.

This fund gives retail investors with small amounts a chance to benefit from institutional style asset allocation and fund management. The fund&#39s freedom to use any asset class, any fund manager and any management style may be attractive as market conditions change. However, some IFAs may feel uncomfortable with recommending a fund which has no constraints, especially as they have no input when asset allocation decisions are made.

Recommended

Industry at danger from weapons of mass regulatory destruction

An open letter to Tony BlairI am not one to write to readers&#39 columns, having done so only once before in my 30-year career in financial services. Total frustration and very long, unnecessary hours have prompted me to find the time to put pen to paper. Now that you have survived the Hutton report and […]

Sofa&#39s view

So, this is the last column I shall be posting as managing director of Sofa. At the end of February, I become business development director of the Jelf Group. Since I started with Sofa, it has been quite a ride. Among other things, we have cracked the 10,000member mark. We are now progressing towards a […]

BM Solutions sets up new BTL and sub-prime range

Birmingham Midshires Solutions is offering a new range of loans for the buy-to-let and sub-prime markets. The buy-to-let range inc-ludes a three-year tracker at 5.25 per cent with no arrangement fee, refund of valuation and cashback. The maximum lending limit has been increased to £2.5m at 75 per cent loan to value and £1m at […]

Legg Mason Investments – Legg Mason Asia Pacific Fund

Type: Oeic Aim: Growth by investing in companies in the Asia Pacific region excluding Japan Minimum investment: Lump sum £3,000, monthly £50 Investment split: Financials 22.47%, industrials 19.67%, Information technology 18.82%, materials 13.88%, consumer discretionary 6.26% telecoms services 4.7%, healthcare 4.58%, energy 2.11%consumer staples 0.99%, utilities 0.74%, cash 5.78% Isa link: Yes Pep transfers: Yes […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment