I read with interest the article about Norwich Union closing its fund supermarket after one year, having spent £230m to get 250 Isa customers.
If the figures are correct, that amounts to about £920,000 spent to attract each Isa customer who will be paying annual management charges of about £70 a year each, assuming that their Isa is still worth £7,000.
With hindsight, very few fund supermarkets have proved to be successful for the host organisation. While tumbling equity markets have taken their toll, the experience of Norwich Union clearly illustrates to Sandier and his friends that investors do not buy through the web without advice.
In the event that the person in charge of Norwich Union's online supermarket budget has taken control of their distribution strategy relating to the acquisition of IFAs, I would love to hear from him as we have over 2,000 clients which would value our business at £1,840,000,000 on the same basis. My wife is already on her way to Bond Street.
ABG Financial Management,