Aim: Income and growth by investing in UK equities, fixed-income securities and cash
Minimum investment: Lump sum 5,000, 3,000 for Isas and Pep transfers, monthly 100
Investment split: 71.5% UK equity, 26.4% UK corporate bonds, 2.1% cash
Isa link: Yes
Pep transfers: Yes
Charges: Initial 4.25%, annual 1.6%
Commission: Subject to negotiation
Tel: 0845 9444800
The Norwich Manager of Manager Income Fund is a multi-manager fund that will outsource manager selection to Aon Asset Management while Norwich Unions investment arm Morley will set the asset allocation framework.
Aptitude Financial Planning principal Roy Rutter thinks manager of managers is a concept yet to grasp clients imagination. “I think Aon and Morley will have to work hard on this fund and the others in the manager of manager range,” he says.
Rutter feels nothing particularly marks this out from other manager of manager offerings, although he concedes that the Norwich Union name will help consumer awareness. “The literature is well presented, if a little wordy, and the charges are about what I would expect,” he says.
Highlighting the less appealing features of the fund Rutter says: “I would have liked to see the income fund as having nearer to a 60/40 per cent split between equities and fixed interest. The mix of managers is interesting but some names will be totally unknown to investors such as Lindsell Train, Intech and Rogge.”
According to Rutter, competition is most likely to come from the manager of managers offering of Scottish Widows. He also mentions what he regards as the better funds of funds such as those from Jupiter, F&C and Credit Suisse.
Suitability to market: Average
Investment strategy: Average
Adviser remuneration: Average