Fund groups will be able to offer standalone low-cost pension schemes under proposals in a private members bill laid before Parliament on 28 October. Conservative MP Malcolm Rifkind's savings and retirement account (Sara) proposals are aimed at creating a transparent pension arrangement that operates similarly to Isas and CTFs, allowing fund groups to use existing adminstration platforms. It would also allow pure fund houses to offer personal pensions and group personal pensions without having to have a life office attached to the product. The Sara is the industry's most recent attempt to come up with a streamlined 401(k) type pension arrangement, with the Lisa and the IPA its predecessors. By enabling the providers to use existing administration, the ease and cost at which pensions can be offered could put pricing pressure on the pensions market.
Norwich Union has made its three funds of funds available to investors through an Isa and Pep Wrapper. Prior to 17 October, the Norwich Union funds of funds, Cautious, Mixed and Growth, were only available to Portfolio bond and pension investors. John Osman, investment product manager at Norwich Union said: "We recognise the importance of multi-manager as a proposition and as the funds are very good performers we wanted to make sure they were available to all our investors by adding them to our collective investments range." The funds are managed by Investment Management Selection (IMS), which selects and monitors underlying investment while Morley Fund Management does the asset allocation. All three funds are AA rated by Standard & Poor's
Friends Provident has designed a new Isa, which allows investors to use their mini (£4,000) or maxi (£7,000) Isa allowance. It makes use of rule changes earlier this year that allowed life Isas to be reclassified. The Isa offers access to 11 different F&C managed funds, including four multi-manager funds, plus fixed interest, index-linked, managed stewardship, UK Equity, European and North American. Investors can change funds free of charge up to 12 times a year. It also offers loyalty bonuses of 0.5% of units if the Isa is kept for more than seven years. The policy will pay out 101% of the policy value on death. The annual charge is 1.25% a year.
Eight UK growth funds have been placed under review by Standard & Poor's with DWS, Fidelity, Mellon and Threadneedle all affected due to fund manager movements. Among the individual funds affected are Newton UK Opportunities, Fidelity UK Aggressive, DWS' UK Opportunities and UK Growth. Among the upgrades in S&P's latest review of the sector are Fidelity MoneyBuilder Growth portfolio moving to an AA rating while Invesco Perpetual has seen three of Ed Burke's funds, UK Aggressive, UK Growth and the Invesco UK Equity fund, also upgraded to AA rating.
Investment Solutions Fund Managers has launched a new multi-manager OEIC and its first high alpha fund, the Select UK Equity fund. Aimed at both Defined Benefit (DB) and Defined Contribution (DC) scheme members, as well as Alexander Forbes Standard SIPP, the Investment Solutions Multi-Manager OEIC has been introduced to provide investors with higher returns by investing in high alpha mandates, while at the same time reducing the risk by diversifying across a mixture of specialist boutique and large managers in a multi-manager Oeic. It has a minimum investment of £100,000.
Clerical Medical has introduced a new onshore investment bond. The bond offers the option of a high allocation rate, combined with a choice of regular income or long-term growth. The new bond also offers fund-specific withdrawals without incurring any additional costs. The bond has 70 underlying funds from providers that include Fidelity, Invesco Perpetual, Insight Investment, Newton, Schroders and UBS. The minimum investment is £10,000 with minimum additional investments of £1,000. The minimum one-off withdrawal is £1,000 with a minimum regular withdrawal of £20 per month.
Real Adviser would like to apologise to AIG Life and Insight Investment for the publishing of incorrect contact information in our 2005-06 Guide to Outsourcing Investment. AIG Life's address is ALICO House, 22 Addiscombe Road, Croydon, Surrey, CR9 5AZ, they can be also be contacted via the Broker Services Team on 0700 244 5433 or at www. aiglife.co.uk/scorpion. Insight Investment Funds Management Limited is based at 33 Old Broad Street, London, EC2N 1HZ, the group's Adviser Services Team can be contacted on 0845 607 0728 or at [email protected]
Collins Stewart has launched its UK Growth Fund, which is managed by the Walker, Crips, Weddle, Beck plc (WCWB) UK Growth fund management team of Stephen Bailey and Jan Luthman. The fund is a Dublin based, open-ended Ucits III product that can be sold in continental Europe, the Channel Islands and the Isle of Man. The fund is a mirror of the existing onshore Walker Crips UK Growth Fund.
Close Finsbury Asset Management has appointed Stuart Alexander in the newly created role of head of distribution. Alexander was previously at Insight Investment where he was director of global partners. He has also held sales roles at Invesco Fund Managers, Morgan Grenfell Asset Management and Gartmore Fund Managers. In his new role he will be responsible for managing all external distribution channels and developing new opportunities in the third-party market and with strategic partners.
Legal & General has appointed Peter Chambers as the new chief executive officer of Legal & General Investment Management (LGIM). Chambers has previously held roles as chief investment officer at Gartmore Investment Management and chief executive at Framlington Group. He will join LGIM on 14 November 2005. Tim Breedon, LGIM's current head, will be taking the position of group chief executive of Legal and General Group on 1 January 2006.
T. Bailey Asset Management is offering 4.5% initial commission on all lump sum business into the retail class of the T. Bailey Growth and T. Bailey Equity Income funds. T. Bailey takes 0.5% from the 5% initial charge, and a trail commission of 0.5% is also payable. The funds of funds are co-managed by Richard Martin and Jason Britton. The offer will apply until the end of the year.
Skandia Investment Management (SIML), the asset management arm of the Skandia Group, has added a multi-manager ethical fund into its range of single strategy funds. The Ethical fund will use both a fund of funds and manager of managers approaches. The fund will invest in three retail funds: F&C Stewardship Growth, Aegon and Norwich UK Ethical funds, while JP Morgan will manage a segregated mandate for the fund.
Larger sample size to follow
Annual, tapered, money purchase …
As boss Tim Orton exits