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Tech fund will turn away Fofs

Close Finsbury head of distribution Stuart Alexander says the firm will turn away any fund of funds managers wanting to invest in its technology fund.

The 900,000 fund grew to 10m in the technology bubble but it suffered when two fund of fund managers withdrew their combined investment of 8.5m.

Alexander says: “This fund will always be price-sensitive because of the number of smaller stocks it invests in, so we are keen to attract interest from the intermediary market and private clients. We will turn away fund of fund investors, as we want to get investors in of a reasonable size.”

But his stance has baffled Credit Suisse head of multi-manager Gary Potter who says there is a growing perception that fund of fund managers allocate assets aggressively but not all of them can be tarred with the same brush.

Potter says: “Funds need to be 6m or 7m in size to justify their costs and if you only have 900,000 I do not think that beggars can be choosers. To actively discourage one of the fastest-growing sectors of the market from investing might be counter-productive.”


Protected rights ban for trust-based Sipps

Trust-based Sipps will continue to be prevented from holding protected rights, according to the latest Department for Work and Pensions update. But Sipp arrangements will be allowed to sit within the wrapper of an appropriate scheme without invalidating its contracted-out status.

Glasgow in high-income launch

Glasgow Investment Managers is offering the Mackintosh high-income fund aiming for a net yield of 5.5 per cent a year.

Audit waiver could save advisers 1,000

Thousands of advisers could soon be exempted from strict audit requirements costing them up to 1,000 a year. The FSA is assessing the scope for extending a rule waiver, which is already applied to mortgage and general insurance firms, which relieves companies of the burden of appointing an aud- itor purely for the purposes of […]


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