The company applies a multi-manager approach to its unitised with-profits fund, the MGM bonus growth fund, and also runs a managed fund on the same basis. An internal investment committee makes asset allocation decisions each quarter and five external managers run different asset classes. These managers were chosen from a shortlist put together by Watson Wyatt.Merrill Lynch manages cash and fixed interest, UBS runs global equities and UK tracker funds, Investec and Majedie are responsible for the actively managed UK mandate and Morley looks after the property content of the fund. Unlike some multi-managers, MGM has only one manager for asset classes with smaller weightings while the biggest asset class – UK equities – is divided between several managers to diversify across investment styles. Marketing manager Alan O’Neill says: “The problem has not been with-profits, it has been driven by problems with endowments. WP demand has gone down but I do not think all of that is justifiable on performance. Not all WP funds are going to deliver to investors in future years but you get bad funds in all sorts of areas. “Some people say multi-manager is an alternative to with-profits but overall the multi-manager approach is beneficial to with-profits bec-ause it addresses how to get the best manager for each asset class. No one group is an expert and consistently produces the best returns.”
Brokers are concerned by research showing that 35 per cent of borrowers on short- or medium-term mortgage rates are not planning to remortgage when their current deal expires.
F&C Alternative Investment is positioning itself as a provider of hedge funds to multi-managers with the opening of the F&C citrine fund to new business.
Lighthouse has crept into profit for the first time. The group posted a pro- fit before amortisation of 71,000 in the six months to June 30 compared with a loss of 992,000 last year. Losses before tax were cut to 131,000, from 1,440,000 in 2004 as the group had significant tax losses brought forward. Turnover […]
This week by Tom Wainwright, personal finance reporter at the Daily and Sunday ExpressWhen does a freebie become a bribe? I was pondering this with some friends the other night over a game of Monopoly on a posh wooden set sent down a few days ago by an internet company to celebrate the launch of […]
Since last year’s reforms to pension legislation, a significant number of retirees have chosen income drawdown over purchasing an annuity. This has presented risks to both individuals and their advisers. In this article the risks are explained – and, importantly, strategies are presented that could help mitigate them. Read this article
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
RLAM’s Head of Credit, Eric Holt recaps 2017 and outlines prospects for credit strategies in our brief video. Watch the video here Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not […]
The Financial Services Compensation Scheme estimates it will pay out £6m over collapsed discretionary fund manager Strand Capital. An administrator’s report published earlier in January shed light on a host of failings that led to the collapse of the firm, which was put into special administration back in May last year. London-based Strand, which had around […]
Regulatory change can leave firms struggling to keep pace and maintain effective compliance. To ensure a successful and sustainable response to regulatory change, firms should consider the following areas. Culture Culture is the foundation of any business and if a firm’s culture is not sufficiently client-focused it will be unable to consistently deliver the right […]