View more on these topics

Zurich and Killik link to offer US-style wrap deal

Zurich Financial Services is teaming up with Killik & Co to target the wealth management market with the first sterling-based US-style wrap account.

Killik-owned Seven Investment Management will offer Zurich&#39s high-net-worth clients an individually tailored wealth management service for a single fee that covers all costs of brokerage commission and stockbrokers&#39 charges.

In the US, wrap accounts are now more popular than mutual funds, with $700bn under management, and have been growing in size at a rate of 29 per cent a year since 1996.

Seven IM will be headed by former Barclays Stockbrokers marketing director Justin Urquhart Stewart and Barclays Stockbrokers chief executive Tom Sheridan.

Investors with more than £150,000 will pay an annual fee of 2 per cent of total portfolio value, sliding down to 1.25 per cent for investments of more than £1.5m.

Zurich will get 0.4 per cent for referring the clients to Seven IM. Zurich and Seven IM believe the charging structure is in line with the spirit of the Myners and Sandler reports and are emphasising the simplicity and clarity of the charging structure.

Zurich strategic distribution director Kevin Ronaldson says: “Clients may be happy to go through Threadneedle for their Isas but at the moment we have to send away those who want advice. By teaming up with Seven IM, we will be able to offer addedvalue sophisticated investment services.”

Torquil Clark pensions development manager Tom McPhail says: “Clarity and transparency are clearly good and are qualities that on occasion have been in short supply in the past.

“They are moving in the right direction. But I cannot get massively excited about it – they are repackaging a service that is largely already available.”

Recommended

Massow buys back IFA business

Ivan Massow has successfully bought back Massow Rainbow, the IFA business he founded, from the receivers as reported by Money Marketing on late afternoon on Friday October 5.

Advisers enjoy fringe benefits

Tension at the Labour Party conference was so thick, you could cut it with the proverbial knife. All eyes and ears were pricked for any indication of whether military action against terrorism would begin during the abbreviated get together.Security was tight. In addition to the imposing fence surrounding the area and the airport-style scanners, every […]

Flight hits out at FSA claims over fees

Conservative shadow paymaster general Howard Flight is disputing FSA claims that consumers are prepared to pay fees for financial advice.Speaking to Money Marketing at the Tories&#39 annual conference in Brighton this week, Flight said commmission is preferred bec-ause it is more tax-friendly to consumers as they do not have to pay VAT.The FSA said at […]

IFAs confident in mortgage market

Confidence in the mortgage market among financial advisers and their clients continued to rise during the summer months, according to Paragon Mortgages. The lender’s financial adviser confidence tracking index for the third quarter rose to 116.4 from 113.6 in the previous quarter, its highest level since 1997. Paragon says its findings show borrowers are currently […]

Auto-enrolment: tips for employers

The Pensions Regulator (TPR) has released advice on communications for employers, including three tips to help you with your auto-enrolment duties. 1. Allow enough time to select your pension schemeIt’s recommended that you start to prepare for auto-enrolment at least 12 months in advance of your staging date; additionally, give yourself time to choose the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment