View more on these topics

L&G sets up &#39best of breed&#39 supermarket

Legal & General is to enter the fund supermarket war with a direct and IFA offering to rival Fidelity and Cofunds.

The new platform, which will be launched in September, will see fund managers vie to offer a “best of breed” selection of funds, with around six funds per sector.

The funds will be selected by Legal & General, based on past performance, strength of brand and IFA and consumer opinion.

It will be the first to move away from the traditional supermarket model, which looks to offer users as wide a selection of funds as possible. The company says although many IFAs want choice, there is also strong demand for a more simple supermarket which does not overload users with information.

The supermarket is looking to launch with between 50 and 75 external funds as well as L&G&#39s entire unit trust range. It may add to this total in the future.

The supermarket will be both online and paper-based and will be available to L&G&#39s distribution partners, including Barclays, Alliance & Leicester and Northern Rock as well as IFAs.

The technology for the platform is being developed by the Bank of New York and is based on the Rufus administration system.

L&G says the service will initially offer just funds but it will consider expanding to encompass life and pension products in the future.

Managing director of unit trusts Michael Hayden says: “The feedback we have been getting is that there is an information overload on fund supermarkets. We are trying to get some of the noise out of the sectors. There are a lot of funds out there which are pretty me-tooish. We are looking for the funds which have the broadest appeal to advisers and clients.”

Fidelity says it welcomes competition. Marketing director David Cowdell says: “We know from the US that the supermarkets which straddle both the IFA and direct market are the most successful.”

l Comment, p33

Recommended

Website for gays teams up with MSN

The website says the gay market is one of the most lucrative in the country and estimates it is worth £95bn. It says the average £30,000 earnings for gay men and women is significantly higher than the national average of £19,000. Average disposable income in the gay population is higher, as is ownership of pension […]

Lambeth cuts its discounted rate mortgage

Lambeth Building Society has brought in the two-year discounted mortgage for existing clients as well as people looking to feather their first nest.Lambeth has set the interest rate at 2.21 per cent below its standard variable rate, which on April 27th was 7.25 per cent. The discount gives the mortgage a payable rate of 5.04 […]

iShares trust in telecoms

iShares has added the iBloomberg European telecoms fund to its range of European sector-based exchange traded funds.Exchange traded funds are still a novel idea in the UK, although they have existed in the US for the past eight years. They have the liquidity of shares in that they can be traded on the stock exchange. […]

SLFoC appoints Hanby as managing director of UK insurance operations

Sun Life Financial of Canada is appointing Peter Hanby as managing director of its UK insurance operation. Steve Melcher, the previous managing director, will become non-executive chairman. Hanby, was formerly finance director. He qualified as an accountant in 1973 and held positions with Unigate, Granada and the Prudential.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com