View more on these topics

MetLife guarantee aims to fill a gap in pension sector

US financial services giant MetLife plans to take on the UK market in January with a guaranteed income retirement product.

It will aim at the increasingly competitive market for people who do not want to buy an annuity but are not prepared to take the risk of income drawdown.

The funds will be invested in around 20 different managers, including Invesco Perpetual, Fidelity and Schroder. Minimum investment is £50,000. The plan guarantees to pay 100 per cent of the initial sum invested and any gains the fund has made every three years.

Investors pay a 3.6 per cent AMC for the aggressive managed fund and 2.5 per cent for the defensive managed fund.

Chief operating officer Paul Shallis claims that no other firm offers this type of guarantee.

MetLife, which has total assets of around $500bn, has set up an office in Canary Wharf in London’s Docklands with 50 staff.

Shallis refuses to discuss whether the company has any acquisition plans but says it will be launching other pension and investment products, including onshore and offshore investment bonds.

He says: “This guaranteed product will fill the void between annuities and income drawdown. Nobody else offers these types of guarantees in a pension wrapper.”

Buckles Investment Services chief executive Nigel Speirs says: “This sounds like good marketing. My view is that these kind of guarantees will always come at a cost. If the cost of the guarantee sacrifices performance, then I question whether we would do it.”


Standard bearer

Earlier in the year, Standard Life attracted criticism in some quarters over the transparency of its charging model.

‘Borrowers should pay for increased proc fees’

Mortgageforce managing director Rob Clifford believes that brokers are being underpaid on prime cases and he wants higher charges for borrowers to pay for increased proc fees.Clifford told the Mortgage Business Expo in London last week that borrowers are getting a “free lunch” as brokers earn far less than counterparts in other markets.He said intermediaries […]

Hogarth joins Cavanagh board

Paul Hogarth has joined the board of Cavanagh Group as non-executive director. Hogarth believes his experience will help Cavanagh maximise their opportunities in the fund management space. Non-executive chairman John Campbell will be moving into a part-time executive chairman role, reflecting his increased involvement in the day to day operations of the business.Hogarth was a […]

‘Commission is better value for consumers’

Clients seeking investment advice get better value from a commission-based model than they would if they paid a fee to the adviser, according to Edward Jones.The US-owned financial adviser and stockbroker says if a portfolio is put together correctly, the client should not need to change the allocation on review.Research department market strategist Kate Warne […]

Brexit Commentary from Natixis Global Asset Management

By David F Lafferty, CFA, SVP – Chief Market Strategist Thursday’s historic Leave vote in the UK will have both immediate and long-term consequences for the global economy and financial markets. The initial flight-to-quality reaction across asset classes has been exacerbated by the market’s misplaced confidence in a Remain victory leading up to the vote. Stock markets […]


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