View more on these topics

This week in Investment

Royal London’s new Riley investment bond product is designed to give investors the option of investing in a passively managed FTSE 350 tracker or picking an actively managed 350 fund while building in the flexiblity for the investor to pick or choose their respective level of exposure to both.

While the name of the new product could be seen as a license for subs everywhere to have a little fun – as some already have – the group may not have been expecting quite the level of flak over its charging structure.

The initial charge of 6.75 per cent is viewed in some quarters as prohibitive.

While the ten year product has already received plaudits for being flexible and transparent there is a suspicion in some quarters that the biggest beneficiaries will be Goldman Sachs, who will provide the protection.

Having done the maths from examples provided by Royal London, Bestinvest’s Justin Modray estimates that if the client wants 100 per cent capital protection over the full ten year term, it would cost around 15 per cent.

If Modray’s assertion that the true opportunity cost could be up to a quarter of the initial investment when the cost of lost potential growth of the protected money is factored in, Royal London may struggle to market the product as investors seek cheaper alternatives.

Schroders on the other hand are happy to endorse the product, especially as the group’s Andy Simpson has been chosen to run the actively managed chunk.

Time will tell whether investors will be swayed by the investment bond as opposed to alternative opportunities but Royal London should be given some credit for coming up with something a little different.

First State will probably be upset at the departure of their global opportunities fund manager Andrew Dalrymple who has gone with the recent investment trend of setting up his own boutique.

Anyone who has returned 76 per cent against a three year sector averge of 44 per cent is always going to be hard to replace and global growth manager Habib Subjally has big boots to fill.

Dalrymple’s next move looks quite intriguing but as yet there is scant detail on his new boutique beyond the fact that it may involve a number of long/short hedge products. One insider believes it may contain a large amount of European product and rather less from emerging markets but all will be revealed soon.


Retirement Plus bolsters coverage

Retirement Plus has hired two senior relationship managers to bolster its regional coverage. Dawn Trustam and Roger Oldbury will be responsible for the Midlands and North Wales and London and the South-east respectively. Trustam joins from RBS and Oldbury joins from Zurich.

Offer you can’t refuse

Admin: Hamptons Mortgages technical director Jonathan Cornell looks at why so few lenders keep brokers up to date on the progress of their clients’ applications

Five new members for the FSCP

The FSA has announced five new appointments to the Financial Services Consumer Panel.Kay Blair, Stephen Crampton and Lindsey Rogerson will join the panel straight away while Michael Chapman and Jenny Hamilton join at the start of next year.Bair has been a member of the Scottish Consumer Council since 2003, Crampton is an independent EU and […]

Twice as nice

For those of you who remember the lord of the black dogs and former MM investment hack, you might be interested to know that Matt Davis is now officially married. Again. Having parted our shores for the rolling hills of Portland, Oregon and the lovely Sue, and having had the civil ceremony earlier this year, […]


Guide: what you need to consider for your auto-enrolment project

In this guide, Johnson Fleming reveals what items you need to understand to gauge the impact of auto-enrolment on your business. The guide focuses on: the impact that your auto-enrolment scheme will have on you; assessing your workforce; understanding your staging date; reviewing your current provision; and modelling contribution levels and costs.


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