Scottish Widows Investment Solutions has taken about £300m into the four fund of managers portf...
Scottish Widows Investment Solutions has taken about £300m into the four fund of managers portfolios run by Frank Russell in their first year of trading.
Some 55% of investment in the funds, which launched on 28 January 2002, has come from intermediaries, according to the company. The rest has come through Lloyds TSB Bank and a small in-house direct marketing and sales operation. All four funds are available to offshore as well as onshore clients.
Andrew Gordon, Scottish Widows Investment Solutions' senior investment development manager, said: 'In terms of what investment has gone into, there is a roughly even split between life, pensions, unit trust and Isa sales.'
Most investment flowed into the Scottish Widows Balanced and Progressive portfolios, he added, with smaller amounts into the more aggressive Opportunities Portfolio and more conservative Cautious Portfolio.
Over one year, three of the funds have underperformed their respective IMA sector averages while only the Cautious Portfolio has preserved investors' money, returning 1.4% before charges on a 12-month view.
The Opportunity Portfolio declined 27.3% in the 12 months to 14 February, bid-to-bid, according to Standard & Poor's. This compares to the Global Growth sector average loss of 30.2% over the same period, ranking the fund 40 out of 160 in the sector.
The Progressive Portfolio lost 22.3%, bid to bid, of investors' money over the same period, ranking it 50 out of 91 funds in the sector, which fell 21.2% on average. The Balanced Portfolio, the largest of the four at £94.3m, has lost 13.23% over the 12 months to 14 February, while the sector declined 10.8%.
The Cautious Portfolio returned 1.39% in the 12 months to 14 February against a global bond sector average of 5.84%, ranking it 39 out of 47 funds in the sector.
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