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Singer & Friedlander mirrors private portfolio

SINGER & FRIEDLANDER INVESTMENT MANAGEMENT

Model Portfolio Fund

Type:
Oeic

Aim:
Income and growth by investing globally in equities and fixed-interest securities

Minimum investment:
Lump sum £75, 000

Investment split:
55% UK equity, 7.6% UK fixed interest, 7.4% European equity,
5.2% Far East, 5.1% US equity, 2.9% Japan, 5.1% rest of world,
2% UK gilts, 9.3% cash, 0.4% other

Isa link:
Yes

Pep transfers:
Yes

Charges:
Initial up to 4.5%,
annual 1.25%

Commission:
Initial 3%
renewal 0.5%

Tel: 020 7523 5502

Singer & Friedlander Investment Management has issued a retail share class on its model portfolio fund which is designed to mirror a discretionary portfolio service.

Andrews Gwynne investment manager David Cowell thinks that in trying to be all things to all men this product runs the risk of being medium at everything, including performance. He says: “This fund could be useful to IFAs as a core holding as it purports to be a middle-of-the-road balanced fund. As such, it could have long-term CGT benefits, being a collective.”

Cowell likes the income facility and regards the literature as plain and simple. He feels adviser remuneration is standard and the charges are reasonable, with the exception of the dealing charge which seems high. He adds: “Perhaps it is making up for the 0.75 per cent annual management charge, net of IFA renewal commission.”

Looking at the negative features of the fund Cowell says: “It has a very high minimum investment level. Why use this when other products are available at a much lower threshold? The literature states it has the advantages of a private portfolio with all the benefits of a fund. I beg to differ. The main advantage of a private portfolio is that it is put together and managed on a bespoke basis to cater for the specific objectives and risk profile of the client. But this is plain vanilla, everyone gets the same.”

Cowell also points out that the dealing charge could increase the annual charge. He explains: “Typical turnover could well be 40 to 50 per cent, in which case a further 1 per cent could be added to the charges, making it 1.75 per cent or more.”

Cowell thinks Singer & Friedlander will face competition from private client discretionary managers offering a bespoke service, fund of funds and managers of managers. He concludes: “In trying to appeal to IFAs using a collective investment profile, Singer & Friedlander is losing the plot.”

BROKER RATINGS:

Suitability to market: Poor
Investment strategy: Average
Charges: Average
Adviser remuneration: Average

Overall 4/10

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