Scottish investment manager Baillie Gifford is aiming to build its retail business through IFAs with its Oeic Pep transfer.
The product is designed for Pep holders who prefer to have their funds actively managed.
Although no new money can be invested into Peps, investors are allowed to move their money around to different fund managers. Investors might do this if they feel their fund manager is not performing well or they want their portfolio to have more diversity.
The Baillie Gifford Oeic Pep transfer allows IFAs to invest their clients' Pep holdings into a maximum of four Oeic funds out of a range of 10.
These funds are geographically diverse and cut across different sectors. However, there are no externally managed funds available so IFAs and their clients are restricted to Baillie Gifford funds.
Of the 10 funds in the Oeic Pep range, nine have Standard & Poor's star rankings as at November 8, 2000. The Japanese fund is the best, with a S&P five-star ranking and a fund rating of AAA. The UK smaller companies fund is the worst, with a S&P one-star ranking.