View more on these topics

Vanguard looks to add cash and property index funds

Vanguard is looking at launching a cash tracker fund and a property tracker fund as the firm looks to fill gaps in its 21-strong tracker range.

Head of retail and European product development Nick Blake says while both funds would be difficult to launch successfully, there is demand in the market.

He says: “We are looking at a property and cash fund but both are difficult propositions to pull off. There are not many property tracker funds available, so demand from investors is there but the challenge is what index do you track with property? We could possibly track a global real estate investment trust index.”

Blake says there is demand for cash funds despite low interest rates.

He says: “Cash is a difficult area of the market because of the low interest rates. By the time the fund manager has taken charges on the fund, some investors get negative returns. We would still look at it though because it is one of those temporary asset classes that advisers want to park money in while they are doing asset allocation in portfolios.”

Bestinvest senior research analyst Ben Seager-Scott says: “It makes sense for Vanguard to cover all the bases, as correlation and diversification are key considerations when constructing a portfolio and cash and property are important diversifiers.”

Vanguard says its second tranche of exchange-traded funds will include developed market equity and bond ETFs but Blake says the firm has not yet set a date for the launch.

Recommended

8

FSA: Why we rejected an FSCS product levy

The FSA has set out why it believes alternatives to the current Financial Services Compensation Scheme funding model, such as a product levy, are not feasible. The regulator has published its consultation paper on reviewing the FSCS funding model today. It proposes an increase to the annual claims limit paid by investment intermediaries, from £100m […]

Schroders head of European and UK credit exits

Schroders head of European and UK credit strategies Adam Cordery has left the firm. Cordery was manager of the offshore Schroder ISF Euro Corporate Bond, the onshore Schroder Monthly High Income, Schroder Corporate Bond, Schroder All Maturities Corporate Bond and Schroder Long Dated Corporate Bond fund. Before joining Schroders in 2004, Cordery was head of […]

Scottish Widows tops Bestinvest Spot the Dog report

Scottish Widows Investment Partnership has topped the Bestinvest Summer ‘Spot the Dog’ report as the worst offender, with 10 funds on the list representing two-thirds of its assets under management. Investor money held in dog funds across 10 key investment sectors jumped to £26.6bn from the £17.3bn recorded in the last report, published in February. […]

The Technical Quiz – July 26th

To help you to keep up with the fundamentals of tax, retirement and financial planning, try answering these questions.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com