View more on these topics

Letter to the editor: Why no yields?

I am amazed that I have just been told by one leading scottish life office, (who I rather like by the way) that I am the first adviser in the UK that has asked about yields on their pension funds. As a result, I am moved to raise my pen. They told me “as we are not required to report it, we simply don’t provide it”.

Given that a very successful investment banker recently suggested to me that equity markets would be going nowhere for 10 years, perhaps we are entering a Japanese-style lost decade? If this is the case, then surely yield is key to achieving a positive return, therefore why is it so difficult to find the numbers? I think it is a symptom of an over-emphasis on mechanical asset allocation rather than thinking about what is underneath the bonnet. Let me give you an example:-

An Adviser recommends a fixed-interest fund, be it gilt, corporate bond, etc…and that fund has a mixture of stocks with varying durations. What consideration is given to how that fits with the client’s time horizon? How is a long dated 15-year gilt relevant to somebody with five years to retirement?

Almost by differentiation, Scottish Life specifically have shorts, mediums and longs in their standard pension offering and I have to ask why this is not a standard policy for all providers? I am sure we would all agree that it’s very risky to be out of synch on time horizons when recommending any investment.

So, at a time when most fund managers are reducing their weightings in gilts and looking to generate income in other ways, we should be pushing the providers to release this basic information to assist in our recommendations. Is this too much to ask?

Trevor Whiting


Core Financial



FSA targets wrap and Sipp providers in Ucis clampdown

The FSA is preparing to scrutinise the role of product providers as part of a wider clampdown on the marketing and promotion of Ucis investments. In August, the regulator proposed banning the promotion of Ucis and similar products to retail investors unless they are sophisticated, high-net-worth individuals. The ban would cover what the FSA calls […]


MAS: We can work with IFAs to fill advice gap

The Money Advice Service has claimed it “often” refers web users to advisers and says it wants to work with IFAs to help fill the post-RDR advice gap. In August, advisers hit out at MAS after its annual review revealed it referred just 3,000 of its 1.1 million website users to regulated financial advisers between […]

Lloyds axes mass-market investment advice

Lloyds Banking Group is axing its mass-market investment advice service while Santander will offer restricted investment advice to customers with £25,000 or more to invest. Last week, Money Marketing revealed that Lloyds will only offer face-to-face investment advice to consumers with £100,000 or more to invest through LBG’s private banking services from November. In February, […]


Intelligent Pensions slams PFS VAT guidance

Intelligent Pensions has criticised recent guidance from the Personal Finance Society on VAT and adviser charging as “nonsensical and impractical” and called for it be revised. The PFS published its latest Professional Direction paper last week, which set out when ongoing reviews are subject to VAT and that referrals to a discretionary fund management service […]


Natixis Global Asset Management’s quarterly Portfolio Barometer offers insights into UK financial advisers’ model portfolios and the allocation decisions they are making. Natixis’s Portfolio Research & Consulting Group works with financial advisers and other intermediaries to analyse and enhance their model portfolios and help them develop investor portfolios suited to today’s complex markets. The Portfolio […]


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