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Massive IFA support for performance fees

IFAs overwhelmingly support moves to bring in performance-related fees on investment funds, according to the One Account/Money Marketing State of the IFA Nation poll.

Eighty-five per cent applaud the FSA&#39s publication in March of more flexible rules for performance-related fees.

But IFAs are evenly divided on whether the mutual fund industry is charging too much for its products. Fifty per cent think that charges are too high while 48 per cent disagree while 2 per cent are undecided.

Bedlam Asset Management is one fund house determined to keep the issue of performance-related fees high on the agenda, having placed them at the centre of its launch in November 2002.

Money Marketing reported in February that Jupiter had floated the idea of introducing performance fees but abandoned the proposal this month after an IFA survey.

Gartmore introduced quasiperformance-related fees about three years ago and says it has had a good IFA response to its UK and global focus funds.

Head of commercial development David Middleton says: “We are not surprised by the interest that IFAs have shown. However, they must not think of it as the holy grail. Remember, performance fees can encourage fund managers to take more risk than IFAs may want for their clients.”

Torquil Clark investments director Philippa Gee says: “This is very much is in demand from investors. Once some of the major groups start to offer these deals, a lot will follow. But there are a lot of pressures at the moment riding on this. Will investors pay a lot more in due time? It may be a case of a great idea on paper but in reality it may not fly.”


Minor to major

GMAC-RFC is offering a new non-conforming mortgage range in a bid to reaffirm its position as the number one lender in this sector. Head of marketing services Jeff Knight says: “We found that many non-conforming clients had minor adverse credit and we have designed a range that meets their needs in terms of rates and […]

Rooms with a view

The Diary hears of a rather unfortunate bungle at this year&#39s LIA annual conference. A computer bug caused more than a few embarrassed chortles when members were misdirected to the wrong rooms at London&#39s Hilton Metropole by hotel staff at the start of the conference. Guests ambled round the hotel searching for the right rooms […]

The yield shield

In the UK there is a general tendency to knock anything that is good, be it in sport, popular music, fashion or business. This rule has also applied to the buy-to-let sector. This market has grown at a great rate of knots over the last few years but it is constantly knocked. We are always […]

Menu master

Menu-based healthcare and insurance packages could be even more attractive if they allow income protection cover to be converted into long-term care insurance. Although a recent arrival on the UK financial services scene, the menu-based life and healthcare insurance package accounts for a major share of total protection sales. It brings advantages for advisers and […]


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