Pack says the reputation is: "Declining, and the company is
selling off sectors." He adds that its reputation has never been
marvellous, but it is worse now.
Marsh is slightly more enthusiastic, calling it fair, but saying it is
Framlingtons reputation that is relevant in this case, and
this is good.
The panel has differing opinions on the past performance of
Framlington. Hill calls it mixed, saying: "Few companies
have good funds across the board."
Marsh says: "The Framlington health fund has been going
for 10 years. Over this time, it has been volatile, but this is only to be
expected. It has a good record for the long haul."
Pack says: "Its past performance is excellent, but in due
course we will not be allowed to consider this. It is very good in most
fields, and always particularly strong in healthcare."
When asked which products will provide the main competition, the
panel lists NPIs health fund, CA Funds and Close
Finsbury. Hill says: "You can access Framlington via other
multi-funds at less cost, with no charge to switch. Why go with a
mirror fund when you can go direct."
Considering whether the charges are fair and reasonable, Pack
says: "The annual charge is reasonable, but the bid/offer
spread is far too high." Hill thinks all the charges are too
high, while Marsh disagrees and says they are fair and
When asked the same question regarding commission, Marsh and
Hill think it is fair and reasonable. Marsh adds that multi funds
usually pay around 4.75 per cent initial. Pack thinks it is too high.
There is a difference of opinion when it comes to product literature.
Pack calls it very poor while Marsh says: "The factsheet is
long on history of the sector but not on the manager and its track
Hill says: "It is a factsheet, and thats all we are
interested in. There is no point hiding the facts in a glossy brochure,
keep it simple."
Summing up, Hill says: "Framlingtons three
year volatility is approximately 13 per cent. If this is to mirror that fund
should not the volatility be similar? The fund is fine but I will probably
access it via multi funds, especially under current market