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Product Matters – new ISA fund launches

The Isa season has kicked off and the number of fund launches is increasing steadily. There is no particular theme this season and the launches span aggessive growth, fixed interest and equity income.

So it is no easy task for marketing types to come up with a sure-fire way of raking in investors&#39 cash. The only real thirst investors have is for income, which is not surprising against the background of pitiful deposit returns.

Jupiter&#39s new distribution fund is an interesting launch although you might think it is as dull as dishwater. There will be no fireworks and many will find it hard to get excited about. But therein lies the point – it is not supposed to excite.

The fund will be in the cautious managed sector and has an approximate split of 65 per cent in corporate bonds and 35 per cent in equities. Jupiter anticipates an Isa yield of 5 per cent annually, which is attractive compared with the very best deposits or cash Isas.

John Hamilton will manage the corporate bond element, which will be invested 90 per cent at BBB+ or above and 10 per cent in the lower-risk end of high yield. The anticipated yield is 6.3 per cent gross.

Tony Nutt will manage the equity portfolio, aiming to achieve a yield of between 4.25 and 4.5 per cent.

Jupiter is very keen to manage investors&#39 expectations in terms of future returns and this fund certainly does not have an ounce of hype about it. I agree with Jupiter that, as an industry, we have a duty to make sure investors do not expect double-digit returns in future.

Thumbs up to Jupiter for its responsible approach.


All-party MPs attack plan to axe polarisation

Government backbenchers and the Opposition have attacked the FSA&#39s plans to scrap polarisation, warning it will restrict independent advice to the rich and reduce the viability of IFA sector.The Conservatives say the possibility of misselling would be greatly increased and that IFAs could effectively disappear.Labour backbencher and member of the Treasury select committee Jim Cousins […]

FSA to axe polarisation

The FSA has this morning announced plans for the abolition of the polarisation regime. It has branded the regime a “major market distortion” which has failed to deliver sufficient consumer benefits to justify maintaining it. The move comes in a consultation document, which begins a further three month consultation process at the end of which […]

Research claims to show bond commission bias…

IFAs have shown significant evidence of commission bias when choosing between providers for with-profits and distribution bonds, according to an FSA report although it admits the markets is not riddled with bias.The research, by Charles River Associates in October last year, is published as part of consultation paper 121. It claims to reveal some evidence […]

Julian Gibbs

Very often, last year&#39s worst performing sectors become this year&#39s winners. The worst performer in 2001 was technology, with the average unit trust being down by 47 per cent at the beginning of December. European technology shares were particularly badly hit.While technology shares will continue to remain volatile, there are now some bargains which the […]

Retirement - thumbnail

A downhill stroll?

The Department for Work and Pensions (DWP) has recently published new research, which once again demonstrates how the prospect of retirement is changing for older workers.


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