Threadneedle is looking to add regular savings and cash withdrawal facilities to its fund range. ...
Threadneedle is looking to add regular savings and cash withdrawal facilities to its fund range.
The group offers only lump sum access at the moment but is looking to change this after introducing regular savings for its German clients.
Richard Eats, communications director at Threadneedle, said: "It has meant employing 16 people just to look after the administration side, which is very expensive. We have to be sure that there will be sufficient demand before we introduce this but as our brand gets bigger we are thinking about it more and more." An additional hazard to setting up a regular savings product is reconciling many portions of small amounts of money.
Eats said: "Trying to reconcile deals of £10,000 is difficult enough but trying to balance lots of £50 deals could be horrific. If anything goes wrong, it would be difficult to rectify."
Threadneedle is also investigating the implications of adding a cash withdrawal facility to its savings products.
Eats said: "This would work in the opposite way to a regular savings product as their investors could take portions of its savings out of an account." Administration costs and the demand for this type of product is another issue for Threadneedle.
Eats said: "There is the possibility that investors may not end up saving anything. Cash withdrawal features would also mean it would take us more than three and a half years before we started profiting from the product."
The group is also considering adding a range of sector funds to its retail products.
"The business is growing rapidly and it is vital to stay aware of themes and opportunities," said Eats.
‘Most significant’ upgrade since launch
Changes happening over coming months
Had accepted British Steel business
Aimed at HNW clients and family groups
Set for 1 April 2019