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Old Mutual fund gets AA rating before launch

Standard & Poor&#39s Fund Services has awarded an AA rating to Old Mutual Asset Management&#39s new smaller companies fund, two weeks before its launch.

OMAM&#39s Select fund, due to start on January 29, was awarded the rating on the back of star fund manager Ashton Brad bury&#39s past performance at his previous inv estment houses.

Only a handful of funds have been given a rating before their launch.

S&P&#39s report on the fund highlights Bradbury&#39s top performance at Hill Samuel and HSBC bet ween 1991 and 1998 but discards his more recent poor performance at Hill Samuel in 1999.

It says: “Given the shortness of his tenure as manager during 1999 and the extent of portfolio restructuring required, we do not consider that the performance of that fund can be seen as a fair reflection of Bradbury&#39s abilities.”

Sceptics have voiced concerns that awarding a rating to a new fund could undermine the value of the S&P&#39s rating service.

S&P Fund Services head of research James Chew says: “We look at the manager&#39s previous track record and consider whe ther a similar style of inv estment and similar team can be continued.

“If we are satisfied that it can be continued, we are happy to award a rating to a new fund.”


L&G offers high income Isa

Wingar says: “The Isa offers no, or very little, capital growth over the medium to long term.”Buswell adds: “The major disadvantage is, I suppose, the fact that the maximum investment allowed at the moment is £7,000 per person in this tax year – and an income of 8.5 per cent from £7,000 is only £595 […]

Institute of Actuaries announces Equitable investigation committee

The Institute of Actuaries has announced the makeup of the committee of inquiry which will look into the closure of Equitable Life to new business. The inquiry will focus in particular on the key issue of the adequacy of professional guidance given by Equitable&#39s actuaries. The inquiry will be chaired by Roger Corley, a former […]

With-profits and losses

DSS proposals for ringfencing with-profits in stakeholder pensions make their inclusion impractical, according to pension providers. The fundamental problem for including with-profits is that whatever capital is put into a stakeholder sch eme has to be ring fenced. But the essence of a with-profits fund – to provide smoothing and a capital guarantee – is […]

ProVen turns to media

ProVen private Equity has introduced its media venture capital trust (VCT) that allows up to 15 per cent of the fund to invest in US media businesses. The ProVen media VCT aims to provide long term capital growth by investing in media related companies and those who help other companies promote their brand names by […]

Sierra Leone cover image - thumbnail

White paper — Sierra Leone International Insights

Jelf Employee Benefits assesses the areas that employers should be aware of when considering operating in Sierra Leone, including healthcare access, delivery and insurance provisions. This report draws on various sources to highlight specific considerations for this emerging jewel in West Africa.


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