View more on these topics

Multi choice in spotlight

The FSA is taking a look at multi-manager recommendations from advisers and is thought to have visited at least 10 firms.

Its concerns include the level of charges and the explanation of them to clients and whether cheaper funds might be more appropriate. It is also asking advisers if they follow star managers when they switch firm, which could have a great deal of relevance given that there has been something of a reshuffle among the multi-manager ranks in recent months. The FSA is stressing this is just a look at present, not a full investigation but could lead to one.

No one is disputing the FSA’s right to investigate any sector. There has been a massive switch of money from vehicles such as with-profits and it is probably good that the regulator is getting to grips with what is happening.

We are a little concerned at some of the questions, in that, from what we are told by advisers, the FSA appears to be concentrating on charges, which are often standard, rather than on the much more illuminating total expense ratios.

We also believe there is, in many cases, a very good rationale for multi-manager recommendations while the ability to switch is one of the most important criteria for an efficiently functioning market.

Whatever the case, we suggest advisers put some thought into the advice process they use when they recommend these products.

Bubble trouble
It must be very annoying for investors and advisers when it is someone else’s exuberance that leads to a fall in asset prices and in their pensions and savings.

The credit bubble has, at its heart, US sub-prime lending that was badly risk-assessed and then sold on. The advice to IFAs of make sure you understand what is in the product applies as much to fund managers at global institutions too.

We can only hope that the world economy is fundamentally strong enough, that the US avoids a recession and that when many UK fund managers say this is a buying opportunity they are right.


Jayne Almond

A keen solver of problems, this ex-business consultant and banker began to ask why elderly people should not be able to release equity from their homes to bolster their income in old age. The answer – equity-release lender Stonehaven – came into being last October with the aim of offering innovative loans. By Will Henley

Sub script

It looks as though we cannot entirely escape America’s sub-prime woes after all as the ripple effect works its way across the Atlantic. After months of sub-prime troubles in the US, the contagion is now affecting the UK, first, via jitters in the stockmarket and now through sub-prime lenders refusing to provide funding to new […]

Splintered seeks cash

Splintered Films is aiming to raise £900m for the production of a psychological thriller, Splintered, through this enterprise investment scheme.

Where next for the price of oil?

Having stabilised at around $65 a barrel, many investors are questioning if the price of oil will rise, and when. Richard Hulf provides his view. Richard Hulf, manager of the Artemis Global Energy Fund, sets out his thoughts about how the oil price may move through the next six months. At the start of the […]


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