View more on these topics

NPI fund charges to be based on performance

Pension provider NPI is the first life office to base external fund

managers&#39 charges on performance.

The company believes one way IFAs can fight back in the post-stakeholder

market is to offer external fund management links on its pensions. It is

also making the fund links open to all its new and existing customers.

NPI says it whittled its choice of fund managers down from 40 to 10 and,

after a further vigorous selection pro^_cess, came up with the final six of

Baring, Henderson, Newton, Perpetual, Schroder and SG Asset Management.

If the external fund underperforms and achieves fourth quartile, the

manager will get only a 0.25 per cent annual management charge. If the fund

outperforms, reaching first quartile, the manager gets 0.75 per cent.

Fund managers reaching second and third quartiles will get 0.5 per cent

and 0.4 per cent AMC respectively.

NPI director of marketing Stephen Ingledew says: “We have learned from the

Aust^_ralian experience that small and medium-sized IFAs are not in the

market for the big trade unions and affinity markets but for

higher-net-worth individuals. The reason is they can offer added value

through the investment range and choice.”

Meanwhile, IFAs are being warned by Clerical Medical
not to become

obsessed with stakeholder. The company says extensive stakeholder publicity

and promotional programmes put out by the Government and product providers

are blinding IFAs to the opportunities on offer in the broa^_der pension


Clerical says independent advisers should treat stakeholder as an

additional product to add to the pension range of products and warns that

concerns over stakeholder
are leading IFAs to question whether they

should be in
the market.

Corporate affairs manager Tony Bloomer says: “That is the wrong question.

Stakeholder is simply a product variant – it is not a market.

“Demand for sophisticated value-added products has not died away. IFAs

must keep the whole market in view otherwise they will lose out.”


Capel Cure Sharp…

Capel Cure Sharp, the private-client inv^_est^_ment management company, isputting its money on horse racing by sponsoringa series of flat racesfor two-year-olds.Its 150,000-a-year stake will sup^_port seven races. The initiative iscalled the Capel Cure Sharp 2YO Bonus Series.CCS initially entered the racing field when it sponsored a group ofNational Hunt races earlier this year called the […]

Stakeholder-friendly choice

Scottish Amicable has introduced the Premier group personal pension, a“stakeholder-friendly” plan.The panel compare the plan with Clerical Medical&#39s Staff-Link companypension plan and Scottish Mutual&#39s Universal group personal pension.Looking at the market suitability of the plans, Cotter says: “The ScottishAmicable plan offers all the elements you would expect from a prov-iderwhich is trying to make a […]

Financial net firms feel the stockmarket pinch

IFA-loyal internet companies have failed to escape the fallout from therecent hurly-burly stockmarket ride.The Exchange, which floa^_ted on the market last summer at the issue priceof 200p, dipped below the 1 level to a low of 97.5p for the first timelast week.It is a far cry from December when the company&#39s share price briefly brokethe […]

Nice to be in control

If anyone is still able to follow David Playfair&#39s logic(?) (MoneyMarketing, March 30), let me briefly finalise the issue.I confess to ignorance but only of clairvoyance, not product knowledge.My own circumstances allowed me to finish a 25-year mortgage in 14 years,paying what I wanted when I wanted, not whatever was demanded whether Iliked it or […]


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