View more on these topics

Product matters

We will all have clients who are not yet brave

enough to invest in today&#39s turbulent investment climate despite the historical outperformance from equities over the longer term.

If the current prolonged bear market has made you doubt whether this is still true, take a look at the Autif quarterly chartpack for October. I can&#39t say I&#39m a fan of investment products investing over a specific period because stockmarkets simply do not work to a pre-determined timescale but JP Morgan Fleming has gone some way to addressing this with its capital protection global growth fund.

The capital is 100 per cent protected over the five-year term,with the initial starting and finishing levels averaged out over one-year periods to help eliminate the risk of poor stockmarket timing both into and out of the product.

A further criticism I have of some “guaranteed” products is where the investment return is linked to a specified, pre-selected basket of stocks none of the constituents of which can be deselected if the fortunes of the company deteriorates.

JPMF has avoided this potential pitfall as clients&#39 investments are spread across some of the best funds from the JPMF stable, including the highly regarded premier equity growth, the AAA-rated global fixed income and South-east Asian growth funds and the European, US and Jap-anese growth funds.

This could be enough to appeal to cautious stockmarket investors whose investment goals still need to be realised whatever the state of the world&#39s stockmarkets.

Paul Illot is a senior investment adviser at Bates Investment

Recommended

St James&#39s Place sees new business up 16 per cent

St James&#39s Place Capital saw its business grow by 16 per cent to £152m in the nine months to September 30, from £131m for the same period in 2000.Pension business grew by 36 per cent over the period to £35m from £26m, and life business grew by 4 per cent to £17 per cent from […]

Merrill Lynch HSBC reduces telephone trading charges

Merrill Lynch HSBC is reducing the level of its telephone trading charges on its direct investing service.Merrill Lynch HSBC clients can now trade online or over the telephone for a flat fee of £19.95 per trade for transactions of any size.Merrill Lynch HSBC UK managing director Victor Dodig says: “Whilst the trend towards investors trading […]

Davies tells MPs to blame arrogant Equitable, not FSA

FSA chairman Howard Davies slammed the Equitable Life board this week over its “arrogant superiority”and resistance to the regulator&#39s attempts to intervene in the guaranteed annuity rate debacle.Speaking to the Parliamentary Treasury select committee this week, Davies said the troubled life office did not act in a manner expected. It did not consult or even […]

Godfrey in call for more disclosure on split-caps

AITC director general Daniel Godfrey has called for greater disclosure across the splitcapital investment trust industry in a bid to prevent a repeat of the market panic of the past month.Godfrey says that while much of the information on split-cap trust holdings is already publicly available through stock exchange ann-ouncements, he believes there is a […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com