Some 97% of Lazards multi-manager investors have opted to switch across to Jupiter's service. The ...
Some 97% of Lazards multi-manager investors have opted to switch across to Jupiter's service.
The Lazards fund of funds and discretionary portfolio services were previously run by John Chatfeild-Roberts, who last year moved to Jupiter, where he set up a fund of funds range.
Jupiter believes one reason for the high switchover rate is that investors in the Lazards tailored portfolio currently pay an annual fee of 1.5% plus VAT. The Jupiter fund of funds, which also has an annual fee of 1.5%, is not subject to VAT as it is classed as a unit trust, rather than a service, for taxation purposes.
Existing investors in the Lazards multi-manager service are able to switch to Jupiter at no cost, although future additional investments will carry a front-end charge of 5.25%, up from the 4% at Lazards. Intermediary commission will be 3%, with 0.5% trail.
'Although the front-end charge will be higher,' Chatfeild-Roberts said, 'most people will not end up paying this as most IFAs rebate most or all of their commission back to their clients.
'We are also offering a 1% discount to the end of June on all lump sum investments.'
The bulk of the merger process, Chatfeild-Roberts said, will be completed by 28 February but the final details will be tied up by May. At this point, all investors in Lazards fund of funds and Personal Portfolio services will have been integrated into one of Jupiter's fund of funds portfolios.
The merger took this long, Chatfeild-Roberts said, because of regulatory processes surrounding unitisation of holdings in the Personal Portfolio service.
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