Can the equity income story – so long a favourite for UK investors – be transported overseas? With Jupiter in the process of launching a Japan income fund and Newton offering a proposed global income mandate, it is interesting to see Britannic’s Argonaut team lining up a European income fund. The fund is likely to be launched in November, subject to regulatory approval, and will aim for a 6 per cent yield.The fund will be run by the highly respected Barry Norris and Oliver Russ, who have already grown the Argonaut European alpha fund by 21 per cent in their first three months of tenure. The team are convinced that European equities offer good value, with companies holding big cash balances, which can be a catalyst for mergers and acquisitions, share buybacks or increased dividends. Eurozone equities have a dividend yield greater than the government bond yield and 70 per cent of European companies offer dividend yields above the real yield on eurozone bonds, so there is a big universe of stocks to tap into. The managers believe income in Europe is sustainable – a key factor given previous launches some years ago, such as M&G European dividend and Merrill Lynch European income, which fizzled out on the back of declining income streams. Proven European exp- ertise looks like marking this launch as one to watch, particularly as it will give IFAs another means to satisfy clients’ insatiable desire for income.
Law firm Beachcroft Wansboroughs is launching an independent research programme into the impact of the FSA’s Arrow visits on firms. The FSA is reviewing its Arrow visits, the regulator’s main supervisory tool in assessing the risk that firms pose to its statutory objectives. Beachcroft will present its findings to the FSA and the Financial Services […]
Leeds & Holbeck building society is launching a new best buy mortgage to compliment its first mortgage product.The new mortgage offers a capped base rate tracker with the cap ensuring the maximum rate payable remains at 4.75 per cent.It is available immediately until December 1. 2008, up to 75 per cent LTV.There is no higher […]
Elections are looming in Germany on September 18 and polls suggest that Chancellor Gerhardt Schroeder could be replaced by Christian Democrat rival Angela Merkel. Merkel has radical plans so what would this mean for investors in Europe’s biggest economy?
It seems now to be pretty well officially recognised that advice on whether or not to contract out, contract in, contract back in or contract back out is impossible to formulate. Neither the FSA nor the Government are prepared to provide any guidance, yet now we read about rumblings of another hindsight review just over […]
As we approach the two-year milestone of auto-enrolment, employers have had the opportunity to truly assess the capabilities of their chosen support. They are also now realising that getting to the staging date was the easy part, and that support is required for almost every aspect of the day to day running of their scheme. With the three-year re-enrolment window coinciding for many with the total removal of commission and Active Member Discounts from pension-related products and services, as well as the introduction of the pension charge cap in April 2015, many employers will have no choice but to review their support options. But, what is involved in transitioning your auto-enrolment scheme away from your current support options? This guide from Johnson Fleming aims to outline some of these key areas and provide information and discussion points on what you need to consider.
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Scotland has introduced a new set of income tax bands, but pensions experts warn that the changes could cause issues with pension tax relief calculations. In the Scottish Budget today, the Government announced a new starter rate of 19p and then a 21p rate for those earning over £24,000. The higher rate of tax is […]
The scramble to do as many defined benefit transfers as possible while values remain high is unabated, and I am constantly amazed at how some firms have thrown caution to the wind in the hunt for their share of this – admittedly lucrative – opportunity. The problem is that advisers are putting their profits before […]
The FCA working group tasked with setting a template for fund charge disclosure is considering whether one or multiple templates would be more suitable. The institutional disclosure working group, chaired by transparency champion Chris Sier, has been tasked with creating a new template for fund costs and charges following the package of remedies outlined in […]