View more on these topics

Scottish Widows – Multi Manager UK Equity Focus Fund

Scottish Widows

Multi Manager UK Equity Focus Fund

Type: Unit-linked manager of managers fund

Aim: Growth by investing in UK equities managed by TT, SVM and Mirabaud

Minimum investment: Lump sum 5,000 via life products, 20 a month via pension products

Investment split: 100% UK equities

Charges: Annual 0.7% plus annual 0.75%-1% depending on wrapper product

Commission: Subject to negotiation

Tel: 0845 843 2111

The multi manager UK equity focus fund is a new addition to Scottish Widows investment solutions range of life and pension funds. It is managed by SWIP, with multi-manager specialist Russell Investment Group acting as investment adviser. The underlying equity portfolio will initially be managed by boutique firms TT, SVM and Mirabaud.

Informed Choice director Martin Bamford feels this fund will meet the growing popularity for asset allocation models for client investment. He says: The fund offers exposure to the UK equity sector with greater risk and potential for higher returns. The size and expertise of the Russell Investment Group is an attractive feature and there is the comfort of having management monitored by professional researchers.”

However, Bamford is not impressed by the equally shared weighting between the three selected fund managers at the outset. He says: “This demonstrates a lack of conviction on behalf of Scottish Widows. Also, the boutique nature of the managers could put off more cautious investors.”

Bamford regards the charges as high and feels they could also put off prospective investors. He says: “If the research on asset allocation is to be believed, this additional cost cannot be justified, as the majority of outperformance returns will come from strategic asset allocation rather than individual manager performance. However, there is an increasing demand for this type of fund from advisers who cannot devote the time to actively research and monitor the fund manager selection.”

Looking at the competition Scottish Widows will face Bamford notes there are a number of manager of manager and fund of funds providing exposure to the UK equity sector. He cites the Gartmore Portfolio UK high alpha strategy fund as a worthwhile competitor.

Suitability to market: Good
Investment strategy: Good
Charges: Average
Commission: Average

Overall 6/10


AMI in plea for trust from FSA

The Association of Mortgage Intermediaries has called on the FSA to build on the trust of the mortgage industry as it enters its first week of mortgage regulation.

Standard arguments

Just when it looked like changes in ownership at the Abbey had provided an opportunity for common sense to prevail in the electronic submission of mortgage applications, an alternative has appeared with the potential to complicate things further.

LIA’s Ellis to head CII public affairs

LIA public affairs director John Ellis is to become the first public affairs director for the Chartered Insurance Institute in the new year as well as filling that role for the Personal Finance Society.

Recording sickness absence cover - thumbnail

White paper — recording sickness absence

The latest figures from the Department for Work and Pensions illustrate that sickness absence is still a major cost to businesses, with an annual bill for sick pay and associated costs to employers of £9bn. This paper from Jelf Employee Benefits looks at the importance of recording sickness absence for any employee health strategy and how this can be carried out in an efficient manner to reduce absence, improve employee engagement and drive up profits.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm