TU Fund Managers (TUFM) is to start actively marketing its three unit trusts, including the top perf...
TU Fund Managers (TUFM) is to start actively marketing its three unit trusts, including the top performing European Trust, to intermediaries, writes James Thorneley.
It is offering direct Pep investors a free switch into its funds, which also include TU British and TU Income. Intermediaries can choose to take commission of up to 3% on switches.
Stanford Jeffrey, director of marketing and sales at the group, said: "Although we have never targeted or supported the IFA market almost 50% of our new business already is introduced through IFAs. I know that IFAs have been recommending the TU European Trust because of its good performance."
The sales and marketing campaign to intermediaries is set to begin this week and its aim is to raise IFA awareness of TUFM and focus on the European fund, which has raised some £20m since April this year.
Jeffrey, who joined TUFM in August and was previously with Sanwa, said: "There are some IFAs who have no awareness of the background to TUFM and that should be easier for them to address once they know where and how to contact us and who they should speak to ."
All the unit trusts are third-party managed by Hill Samuel Asset Management. The £41m TU European Trust, managed by Adrian Farthing head of European equities, is invested in both UK and European equities and has consistently outperformed its Micropal peer group. Over three years, on an offer to bid basis, the fund is ranked one out of seven in the Europe including UK peer group and rose by 130.4% compared to an average rise of 61.2%.
For all three unit trusts the minimum lump sum investment is £500 and the minimum monthly contribution is £35. The group pays IFAs 3% initial commission but does not pay a trail. The annual charge is 0.875%.
The group is developing a website to support IFAs which it should launch in January. The site will enable IFAs to download application forms and product features, view up to date performance statistics, and receive the latest market views of the fund managers.
To 'future-proof advice firms'
Latest news and analysis
Three years at Wells Fargo
Effective from 9 December 2019
One firm with permission suspensions left