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Old Mutual puts on its hard cap

Old Mutual’s move to raise the annual charge on its UK select smaller companies fund has been slammed by intermediaries.

It will hard-close Dan Nickols’s outperforming £441m fund on December 15 or cap it as soon as 350 million accumulated units have been issued and raise the annual charge from 1.5 per cent to 1.75 per cent on February 1. The fund is top out of 46 over five years, returning 199.3 per cent compared with a 96.3 per cent sector average.

Bestinvest head of communications Justin Modray says: “Dan Nickols is an excellent manager but past outperformance does not guarantee future performance. Hard-capping is sensible but to ratchet up the AMC smacks of greed.”

Chelsea Financial Services managing director Darius McDermott says: “We applaud the decision to hard-cap it but think it is an error and cheeky to increase the AMC.”

Old Mutual Asset Management head of marketing Simon Wilson says: “Fund performance will be restricted if it is allowed to grow unchecked so we think a 25 basis points’ rise is a fair balance between maintaining access to an unrestricted fund performance and our prospective loss of business due to the introduction of a limit on units of issue.”


CBI says skills councils are a waste

The CBI has blasted skills councils, saying the Government has wasted millions of pounds on quangos which fail to provide skilled workers.

Half the population haven’t made a will

Standard Life says half of the people in the UK do not have a will and millions could die intestate.Its research also reveals that 74 per cent have not drawn up plans for power of attorney.It says 3 per cent of people own property abroad but do not have a will in those countries to […]

Lost in Paradise

Paradise regained. Perhaps. Perhaps not, on reflection. Having been at an extreme of bearish sentiment in the early summer, investors now seem to have donned rose-coloured spectacles, believing the world’s central banks have engineered the perfect soft landing for the US and global economies, with equities almost celebrating the prospect of slowing growth and slowing earnings’ growth.

Stroud & Swindon expands BTL range

Stroud & Swindon Building Society has expanded its buy-to-let range with four new buy-to-let mortgages. It claims these products are ideal for BTL investors looking to protect their portfolios against further interest rate rises. Sales director Paul Chafer says: “As part of our new portfolio of mortgages, we are delighted to be able to offer […]


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