View more on these topics

More players on the field

There is no denying the success of fund of fund and manager of manager structures, from groups with long-standing offerings such as Jupiter, New Star, Cazenove, Fidelity and Credit Suisse, to relative newcomers such as North, Resolution and Thames River. Some groups have chosen to try a single fund formation using the same approach, such as Skandia’s best ideas funds, or there is even the example of Norwich Union outsourcing UK funds to Schroders and JP Morgan.

According to the Investment Management Association’s quarterly statistics, there were 246 funds of funds at the end of the second quarter of 2007. This compares with 232 a year ago, up from 209 in June 2005 and 190 in June 2004. IMA figures also show that the number of fettered funds of funds has remained fairly static over the same period, from 54 in June 2004 to 66 three years later, showing that the vast amount of new launches are investing in funds outside their own companies.

Over the past three years, assets headed into the sector have grown although not with necessarily the same velocity. In June 2004, the IMA reported gross sales of Fofs were £753.8m, rising to £1.6bn by the end of June 2005, £2.1bn at the end of June 2006 and £2.5bn by the end of this past quarter.

Fund of fund structures sit in every IMA sector but their most natural home seems to be in the managed sectors. Growth in these peer groups has been substantial. In the cautious managed sector, there are just 27 funds with a five-year track record to July 9, 2007 while over three months there are 92, according to Morningstar data. The balanced and active managed sectors – also common homes for funds of funds – are no different, with 72 and 48 respectively featuring five-year track records compared with 118 and 76 over three months.


Lenders add longer fixes

Mortgage lenders are continuing to jump on the 25-year fixed-rate bandwagon following the Government’s call for more choice of long-term fixed rates.Yorkshire Building Society and London & Country are now both offering the 25-year fixed-rate loans after earlier moves by Nationwide and Halifax.Chancellor Alistair Darling said in July he is to start consulting on creating […]

PPF consults over levy plans

The Pension Protection Fund has published a consultation document setting out how it intends to calculate its levy .The paper, launched last week, proposes that the levy is set for three years between 2008 and 2011. It also says Dun & Bradstreet will continue as the PPF insolvency provider for a further two years, after […]

Sants to speak at Aifa Annual Dinner

New FSA chief executive Hector Sants will be the main speaker at this year’s Aifa Annual Dinner.Aifa director general Chris Cummings says Sants’ agreement to speak at the dinner is a sign of his commitment to work with the trade body over the Retail Distribution Review to ensure the best outcome for consumers and the […]

ScotLife says the future is primary or professional

Scottish Life says the recent trend of life companies buying distribution is part of a strategy aimed at creating a new breed of direct salesforces to try to dominate the advice market.The company says it is “quietly amused” by insurers which are buying up distribution and at the same time saying they are committed to […]

The savvy consumer

In last year’s FCA thematic review of the mortgage market, one of the key things highlighted was the “savvy consumer”. That’s the client who comes in the door with a very clear idea of what they need and expect you to get them it. They don’t think they need advice, they have after all consulted […]


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 thought leadership.

    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