View more on these topics

Luckraft names good, bad and ugly in credit crisis

Axa Framlington equity income manager George Luckraft has compared the banking sector with the good, the bad and the ugly.

Speaking at the Axa Framlington conference in London last week, Luckraft said the good include HSBC which has “stayed within its means”. Northern Rock, whose funding model has resulted in its difficulties, is among the bad. The ugly is the impact of the credit crunch on the markets.

Luckraft admitted he took a hit on Northern Rock, selling for 480p a share on the day that the Bank of England announced its bailout but he said he does not expect any banking sector meltdown.

He said: “It is likely that the ugly will come through this OK, but it is still a case of waiting to see who has been swimming naked.”

UK select opportunities fund manager Nigel Thomas said the crisis is similar to the 1907 bank panic in the US which saw stockmarkets fall by nearly 50 per cent from their peak the previous year, resulting in bankers creating, buying and owning the Federal Reserve system in 1913.

Thomas said: “I am not comfortable on financials whatsoever and common sense dictates you should stay away.”

The credit crunch has hammered the performance of most UK funds in recent weeks. In the UK equity income sector, Invesco Perpetual manager Neil Woodford’s two funds are among only nine funds to produce positive returns following Northern Rock’s share price crash.


McFall blasts 125% mortgages

Treasury select committee chairman John McFall has fired a warning to lenders over practices such as 125 per cent and six-times salary mortgages.Speaking at a Citizens Advice/Finance and Leasing Association fringe event at the Labour party conference, McFall said these loans are storing up problems for which lenders.He said he had challenged several chief executives […]

FSA queries reasons for recommending Sipps

The FSA has raised concerns that investors are being sold self-invested personal pensions when a personal pension or stakeholder may be equally appropriate and potentially cheaper.The regulator has carried out a small thematic project to review financial planning advice which has highlighted worries that advisers are recommending Sipps purely on the basis that they offer […]

Simon Fletcher

Auto-enrolment: pay attention or pay the price

By Simon Fletcher

As a chief executive officer of a business in the financial services sector, I have been dealing with the introduction of auto-enrolment for our clients for some time, but I can also speak from an employer’s point of view, having to go through the process ourselves.


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