You are here: Home - Investing - Experienced Investor - News -

‘School fees’ funds: The mixed assets of the future?

0
Written by:
06/10/2014
Fund managers may offer ‘school fees’ or ‘paying the bills’ products rather than mixed investments in future, according to Threadneedle’s head of distribution.

Nick Ring said the government’s pension reforms have heightened the need to offer outcome-orientated products: “People do not really understand what mixed investments means.

“Down the line, managers may create the pension product, or the school fees product, or the paying the bills product. If the regulator allows this, it is what we should be doing.”

In its attempts to understand the needs of consumers, Threadneedle has contacted customers asking them whether they might be interested in acting as a voice for their fellow investors. The firm is developing customer panels to survey roughly 300 active investors on their views of risk.

Ring said clients tend to be professionals or middle managers: “Their investment knowledge is reasonably good. The risk to us is that there could be an element of over-confidence.”

In the meantime, Investec Asset Management managing director David Aird said he is “absolutely devastated” by the lack of trust in the asset management industry. A recent PricewaterhouseCoopers survey found that fund managers are the least trusted of all financial services professionals.

Fund managers need to avoid launching products in the “last hurrah” of a bull market, he argued: “If you think about longevity and the liabilities of a client going into retirement, actually we should be thinking about five- to ten-year cycles.

“A product could spend five years in research and development without even seeing the light of day. Then the next five to ten years could be spent getting traction in the market,” he said. “A fund manager can then invest with a long track record.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week