The unit-linked fund, which has just been made available through Scottish Equitable’s investment bond, mirrors the universal balanced collection pension fund which was established in 2001.It is currently Scottish Equitable’s biggest selling pen- sion fund and has grown to over £1.74bn since launch. An offshore version is also being offered through Scottish Equitable International. Around 75 per cent is invested in Scottish Equitable’s balanced passive fund, which is managed by Merrill Lynch and invests mainly in tracker funds. The remaining 25 per cent will be invested in five balanced managed funds run by Baillie Gifford, DWS, Merrill Lynch, Newton and UBS. The investment split between these five funds will be constantly reviewed and changed if necessary by ScotEq’s investment committee. All five funds are in the balanced managed sector but take different investment approaches. Baillie Gifford is a top-down manager with an equity bias, UBS focuses on undervalued stocks, while DWS emphasises stock selection over asset allocation. Merrill Lynch believes a mix of value and growth investing is the best strategy while Newton looks at global trends and themes. Scottish Equitable product marketing manager, capital investments, Jacqueline Dow says: “The fund is not being limited to actively managed or passively managed styles and we think this hybrid approach adds to its appeal. “We are blending different styles of investment with the ultimate aim of getting better returns. It is just reflecting what a lot of people are doing themselves within their portfolios but we are offering it in a packaged form.”
Gartmore says it is considering flotation but has played down rumours that a move is imminent. Control of the company has moved from the UK to the US over the last year with the removal of UK chief executive Glyn Jones. US insurer Nationwide, which bought Gartmore from NatWest in 2000, is believed to be […]
Alliance & Leicester International is launching a new 1-year fixed rate bond at 4.40 per cent.ALIL is offering the bond to new and existing customers, who are able to deposit between £5,000 and £1m into the 1-year fixed rate bond, maturing on September 30, 2006.Investors can choose to have interest paid on maturity or on […]
Most of us have watched in horror at the situation in New Orleans and the time it took for the relief effort following Hurricane Katrina. That would never happen in the UK, we may think. But would it?
Citizens Advice is calling on the Office of Fair Trading to investigate payment protection insurance, claiming it is bad value. The consumer organisation says the product, which produces annual revenues in excess of 5bn, is often highly expensive and excludes many of the most common situations that lead to debt problems. It claims that banks, […]
Earlier this year, Jelf Employee Benefits mentioned that the then minister for pensions was openly discussing the need for an increase in the minimum level of auto-enrolment pension contributions.
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It is likely the increased regulatory scrutiny on fund managers’ value could filter down to advice firms in the future In my last article, I considered the influence a non-executive director could have in challenging an advice firm’s business model in light of the pension transfer issues. Now, in its asset management market study final […]
The financial services industry has failed to find ways of nudging consumers to think about their options at retirement, despite three years of pension freedoms. A panel at the Association of British Insurers retirement conference today lamented the way companies talk to people about pensions and the lack of engagement it inspires. ABI director general […]
The new chief executive of the single financial guidance body can expect a salary of £175,000 a year, according to a job advert posted online. The advert, posted on the Cabinet Office website says applications will close in mid-May with final interviews held in early July. The date for announcing the successful candidate has not […]