View more on these topics

Swip reclassifies Fofs after breaching ABI rules

Scottish Widows Investment Partnership has reclassified its multi-manager funds on Lipper after the ABI ruled they were in breach of its unit-linked retail fund classifications.

Three Widows&#39 funds, which invest in manager of manager funds run by Russell Investment Group, are in an unclassified sector after the ABI&#39s investment committee ruled they were violating its requirements. The committee objected to the way that Swip hedges Russell&#39s overseas investments back to sterling as it believes there is a different underlying risk profile to UK-denominated assets.

One of the funds affected is Swip&#39s cautious portfolio which, despite being more than 60 per cent invested in overseas bonds, was positioned in the UK fixed-interest sector. The ABI requires funds in the sector to hold at least 80 per cent in sterling-denominated assets. Its committee accepted that hedging removed the currency risk but ruled that it did not mitigate the overseas asset risk.

The other two funds – the balanced and progressive portfolios – fell foul of ABI rules for similar reasons but Russell says Swip and its parent have no intention of changing their approach to suit the sector requirements.

Russell director Peter Hugh-Smith says: “We are talking with the ABI. We do not want to change something for business reasons if it is not in clients&#39 interests.”

ABI spokeswoman Melanie Claisse says: “We gave Widows a lot of leeway to present its case but it is our duty to enable people to compare funds on a like for like basis.”


Bullivant replaces Lawless as MD

Sofa&#39s new managing director Bob Bullivant is aiming for chartered status for the society. Bullivant replaces Brian Lawless who is moving to Exeter, where he becomes business development director with IFA the Jelf Group. Bullivant is joining Sofa from Britannic Retirement Solutions, where he was corporate development director before the firm closed its doors to […]

Standard can keep IFAs&#39 support

Standard Life has long been seen as an insurer that IFAs could recommend with certainty in their hearts over strength, reliability and good service. But confidence in Europe&#39s biggest mutual has been dented by its discussions with the FSA over the new realistic reporting regime and its strategic review into its mutual status. A recent […]

Legg Mason adds to Asian crowd

LEGG MASON INVESTMENTS Asia Pacific Fund Type: Oeic Aim: Growth by investing in companies in the Asia Pacific region excluding Japan Minimum investment: Lump sum £3,000, monthly £50 Investment split:Financials 22.47%, industrials 19.67%, Information technology 18.82%, materials 13.88%, consumer discretionary 6.26% telecoms services 4.7%, healthcare 4.58%, energy 2.11%consumer staples 0.99%, utilities 0.74%, cash 5.78% Isa […]

Out of context

•”Coventry railway station. Yes, it&#39s quite like a swimming pool but fewer people in small trunks.” – BBB chief executive Stephen Ingledew gives a quick summary of his location and its acoustics. •”I need to go for a run every evening. I&#39m becoming a little porker.” – Hargreaves Lansdown chief executive Peter Hargreaves embarks on […]


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 thought leadership.

    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