View more on these topics

OPM tells advisers not to give up on equities

OPM Fund Management says its equity funds are thriving in the current market conditions but IFAs are more interested in its fixed-interest offering because they fear equities.

OPM’s balanced managed, UK equity and equity high income funds are all top-decile in their respective sectors on a bid to bid basis between October 28, 2008 and March 18, 2009, according Financial Express data.

OPM says that unlike billion- pound portfolios, its funds are nimble enough to take full advantage of short-term tactical opportunities.

Although money is still coming into the funds, these are small amounts which do not hamper OPM’s ability to move quickly in and out of markets.

Fund manager Ross Henderson says we have already seen the low point in the market. He is not as negative as he was but expects the move towards a sustained recovery to be full of false starts, with markets experiencing short-term rallies before falling back.

Henderson sees selective buying opportunities in regions such as emerging markets and plenty of tactical plays in direct UK equities and reverse exchange-traded funds. Reverse ETFs allow fund managers to benefit from falls in markets such as the FTSE 100 and Standard & Poor’s 500. OPM will use these ETFs selectively during market rallies.

Henderson says: “IFAs are frightened of equity markets because they have been hit so severely. They were hit in 2003, so that is two big hits in a relatively short time. They are looking at returns and thinking, is it worth investing in equities? In the long term, it should be. It is the wrong time to give up on equities. However much doom and gloom there is out there, some companies have performed better than expected. It is not quite as bad as it was.”


Boom time set for offset mortgages

Personal Touch Financial Services is predicting a boom in offset mortgages as borrowers look to get maximum returns from their savings.Last week, Abbey revived its intermediary offset proposition and recently Woolwich forecast a boom in offset.PTFS sales director Dev Malle says: “People are making nothing on their savings, so now is the time to get […]

Sour note from Sandler

Northern Rock boss Ron Sandler’s speech at the CII president’s dinner last week angered many advisers in the audience.


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