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Lincoln courts IFA market

LINCOLN FINANCIAL GROUP

LINCOLN EMERGING MARKETS TRUST

Type:
Unit trust

Aim:
Growth by investing globally in emerging markets

Minimum investment:
Lump sum £500,
monthly £25

Investment split:
100% in global emerging markets

Isa link:
Yes

Pep transfers:
Yes

Charges:
Initial 5.25%,
annual 1.5%

Commission:
Initial 3%,
renewal 0.5%

Tel: 0845 071 0200

The Lincoln emerging markets trust is a unit trust managed by Delaware International Advisers which will invest in countries such as South Africa, Brazil, China and India.

From his limited dealings with Lincoln, MM Financial Management managing director Miles Moseley concludes that it has a direct sales mentality and he feels it has been unfriendly to IFAs in the past.
He says: “I&#39m sorry to be so negative but this is an indifferent product from an indifferent company. There are so many funds around that a new launch is really not that exciting unless it is very special. This isn&#39t.”

After looking at the track record of Lincoln&#39s other funds, Moseley says: “Most of Lincoln&#39s investment funds are below average according to Standard & Poor&#39s. The exceptions are in North America, which is average, and the Far East which is well above average.”

Moseley complains that none of Lincoln&#39s funds are fund research rated and he think this shows an apparent lack of commitment to qualitative credentials for the funds. He adds: “This is another negative as far as the IFA market is concerned. We never recommend funds without a track record and there is so much choice out there already. Why bother with a company such as Lincoln? For a relatively high risk investment it would be better to stick to one of the established names with a good track record.”

Moseley feels the prospective performance is more important than the charges but can see nothing about the fund that would make him want to use it. However, he adds: “Ask me again in a few years&#39 time when there is some data available.”

On the plus side, Moseley likes the literature and views the commission as standard. But as a fee-based adviser, commission does not matter to him and he points out that IFAs do not recommend products on the basis of commission anymore.

BROKER RATINGS:

Suitability to market: Average
Investment strategy: Average
Charges: Average
Adviser remuneration: Average
Overall 4/10

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Image courtesy of Stuart Miles at FreeDigitalPhotos.net

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