Money Management articles from October 2002

Money Management archives from October 2002

Time on their hands; Technology should make every step of the process of giving financial advice more speedy. Will Hadfield shows how long it takes to provide advice on the average successful sale.(Brief Article)
October 1, 2002... Financial planning is the job of a professional. So it should be no surprise that a fully qualified financial adviser needs to take enough time to be thorough. All of the applications designed for the intermediary market are intended to...

Technology today and tomorrow; As the retail financial services industry introduces digital certificates, intermediaries will have to decide how far they want to embrace technological innovations. David Beattie, head of e-commerce development at Abbey National for Intermediaries, looks.
October 1, 2002... Technology in the intermediary sector has moved from something futuristic and unattainable to a reality. The financial services industry has been aware of the merits of electronic trading for some time. The introduction of industry...

Vertical limits; The hype surrounding the potential of new technology to assist the provision of financial advice peaked more than two years ago. Yet, as Will Hadfield discovers, the actual benefits of vertical integration in the financial advice process are only becoming.
October 1, 2002... Providing good levels of service to intermediaries takes time and money. Lots of money. So it is no surprise that insurers, which are increasingly experiencing downwards pressure on their earnings, have been developing computerised systems...

Its all in the mix; The perils of picking the wrong investments are seldom more appreciated than after two and a half years in a bear market. Will Hadfield examines the software tools designed to avoid these pitfalls by selecting less risky portfolios of investments.
October 1, 2002... Few people ever get rich trying to second guess the stock market. But that has not stopped millions of others from trying. Fortunately for the many that have lost money by taking on more risk than they anticipated, there are now tools to...

Scottish Provident term assurance offer; 5 easy steps.(Brief Article)
October 1, 2002... Protection policies and investment funds are the two most straightforward groups of products to transact online. Supplement sponsor Abbey National for Intermediaries has set up a microsite with leading online portal the Exchange, to offer...

Easier than you think.(using the Internet)
October 1, 2002... For the retail financial services industry, the issue is how intermediaries can harness the potential of the internet to develop business opportunities and make the sale of financial products less time consuming. For consumers the benefits...

Enhancing your prospects; Richard Cowen, recruitment consultant at Joslin Rowe, looks at the advantages of the downturn in the global economy in terms of job searching.
October 1, 2002... The summer is typically a quiet period for the recruitment industry. This year is no exception and the market is much slower than last year for various reasons. First, there was the Jubilee, then the World Cup and the summer holidays. The...

MY FIRST JOB; Name: Stewart Ritchie Age: 51 Company name: Scottish Equitable Position/title: Director (Pensions Development).(Brief Article)(Interview)
October 1, 2002... What was your first ever job? A holiday job in the computer room of the Ormeau Bakery in Belfast. I had to input the roundsmens orders for the next day so that the computer could tell the bakers what to produce overnight. It was one of the...

BUCKING THE TREND; Sales of individual private medical insurance policies may be declining, but one area that is thriving is the over 50s market. Helen Pridham looks at the options for this age group.(Brief Article)(Statistical Data Included)
October 1, 2002... The number of people with private medical insurance (PMI) policies in the UK rose for the second year running to reach a total of 3.7m at the end of 2001, according to Laing & Buissons latest annual PMI report. However, the rise was...

Taking STOCK.
October 1, 2002... The memory of 1987 plays investors false. Then a technical shock, allied to a recently constructed global securities market, sent share prices reeling. But within a year, markets had recovered. Today that trauma is no more than a tiny blip on a...

MADE TO MEASURE.(flexible mortgages)
October 1, 2002... It Is amazing how technology can create new realities by bringing to life ideas that were once considered too difficult to implement. Take the mortgage market. Because interest was calculated and charged annually, offers were limited to what...

Get ready for means testing; John Chapman asks whether pension credit is more easily viewed as a tax. And is the high degree of means testing that it will bring desirable?(Brief Article)(Statistical Data Included)
October 1, 2002... Pension credit provides an incentive for a certain income group to save for their pensions. Under current rules, any second pension (State or private) would be withdrawn on a one for one basis until that second pension plus the basic State...

RUPTURED PRODUCTS; When equities were sky high, sales of structured products were booming. We are now seeing the aftermath. Nicole Pedersen-McKinnon reports.
October 1, 2002... Minimum risk for decent returns. That is what structured products say on the tin. The income or growth on offer can be high. And there is always some mechanism to protect capital. Delve further into the fine print and you find that most have...

Product features that could make or break you.(investment products)(Brief Article)
October 1, 2002... In investment as in life, if something looks too good to be true, it usually is. With structured products, there are several features that allow providers to offer better terms. But the eventual cost can be significant. Extra months the...

THE BEST OF THE WORST; Jon Cudby assesses the battle scars of the investment trust market and questions whether there is a light at the end of the tunnel.(Statistical Data Included)
October 1, 2002... This ARTICLE could not have been written at a worse time for investment trusts. The global economy has spent the last 12 months in a spectacular retreat and no investment vehicles escaped the impact. Most investors believe that the markets...

ACTIVE FUND MANAGEMENT; John Chapman's novel investigation of popular funds suggests that active fund management is probably not worth paying extra for cheap trackers work better.
October 1, 2002... When the CURRENT market mayhem stops, one priority should be to reform the workings of the unit trust market. The long standing debate over active versus passive management has revealed little to suggest active managers repeat their successes,...

ARE THEY REALLY GOOD? Ethical investing is a small sector but its ideas are rapidly becoming mainstream. Can investors have profit and principle? Jess Hinings looks at the range of socially responsible funds on the market.(Statistical Data Included)
October 1, 2002... Making money has never had a terribly good press. Characters from Scrooge to Shylock associate wealth with a lack of human feeling. So fitting morality into an investment process looks rather counter intuitive. But most people need to build up...

Platinum seeks to grab market share with wealth management bond.(Platinum Capital Management)(Brief Article)
October 1, 2002... Platinum Capital Management has launched a new offshore investment bond, domiciled in The Isle of Man. A single premium international whole of life contract, the Platinum Wealth Management Bond is available both to existing and new...

Eastern delights from jupiters emerging Global markets.(Jupiter launches Jupiter Emerging European Opportunities Fund)(Brief Article)
October 1, 2002... Jupiter is celebrating its first fund launch since parent group Commerzbank removed the For Sale sign from around its neck only a few months ago. The investment house has chosen the relatively undersubscribed Global Emerging Markets sector for...

AMP Launches 13 fund Oeic savings plan for Children.(Brief Article)
October 1, 2002... AMP has launched its Child Savings Plan OEIC. Investments start at GBP25pm, or a GBP1,000 lump sum, and can be partly or wholly cashed in once the fund reaches GBP1,000. Additional payments can be made from GBP250 to lump sums, or from GBP10 to...

Standard Life bonds aimed at businesses with cash.(Brief Article)
October 1, 2002... Standard Life Bank is launching a range of bonds and a savings account specifically for business customers. The business bonds are available for 12 or 18 month terms and guarantee returns of 4% pa or 4.2% pa respectively. All interest is paid...

New discount product turns up from Mortgage Express.(Brief Article)
October 1, 2002... Mortgage Express, Bradford & Bingleys specialist mortgage arm, has launched a self certification discount product, which will be available only through The Mortgage Alliance, Scottish Mutual and Scottish Providents mortgage provider. The...

Company targets high net worth individuals with property portfolio.(Mayfair Capital Partners)(Brief Article)
October 1, 2002... Mayfair Capital Partners, a company formed earlier this year, is poised to launch two property funds that will give investors with more than GBP100,000 to spend access to a diversified portfolio of retail, office and industrial property. ...

Bells and whistles without substance; Prudential's first income drawdown product is too late to provide a competitive package in the present market.(Brief Article)
October 1, 2002... Prudential is launching its first income drawdown contract as the giant life assurer continues to re-brand the key pension offerings in its product range. All existing Scottish Amicable products are being withdrawn from sale in...

Investec seeks to plug gap in product range.(Investec Asset Management teams with Thornburg Asset Management)(Brief Article)
October 1, 2002... Investec Asset Management has teamed up with Thornburg Asset Management to offer UK investors a core US fund. Thornburg will run Investecs UK domiciled American Fund and its Guernsey domiciled GSF American Equity Fund. The fund will be...

Solvent abuse.(Brief Article)
October 1, 2002... Your September Comment column refers to the perfectly reasonable concept that solvent employers should stand behind their final salary pension promises in full. The trouble is that we start from where we are. Let me give an example. Consider a...

Consumer confidence.(Brief Article)
October 1, 2002... Having tried to supervise the quality of advice over the past decade, it is now being suggested that the consumer does not need any advice at all! Make it cheap and stack it high, and the consumer will buy (save). Not so for life assurance and...

Standing by pension promises.(Brief Article)
October 1, 2002... I must take issue with John Shuttleworth of PWC, whom you write about in your September comment demanding that employers stand by their final salary pension promises in full. We all sang the ditty about 10 green bottles when we were younger,...

Special offer; GBP1 off the Complete Guide to Individual Pensions.(guidebook)(Brief Article)
October 1, 2002... This month sees the launch of the hugely anticipated brand new guide to individual pensions. The Complete Guide to Individual Pensions is unlike anything else on the market, and will cover all aspects of individual stakeholder and personal...

Financial Adviser Expo 2002; Major industry figures to speak.
October 1, 2002... The financial event of the year is now less than a month away. Financial Adviser Expo offers an excellent chance to make the most of the rapidly changing investment market. The event, which has been organised in conjunction with Money...

Tackled; Insurer agrees to cover acts of cod.
October 1, 2002... Fishermen getting their tackle in a twist trying to get adequate cover for their rods look set to be saved by a new home contents package. Halifax marked national fishing week this summer by announcing its pledge to cover up to GBP2,000 of...

Next month ...
October 1, 2002... As the number of homeowners receiving red letters for their endowments continues to grow, Money Management publishes the only comprehensive survey of the past 25 years of with profits endowment results. Find out how each provider has performed....

Laverick lashes out; Ombudsman uses annual report to slate pensions failings.(David Laverick)(Brief Article)
October 1, 2002... The pensions ombudsman, David Laverick, has used his first annual report to express his concerns about the state of the industry. Laverick is clearly unhappy at the "somewhat anarchical situation", which he has inherited, and used his...

CIS pulls with profits endowments.(Brief Article)
October 1, 2002... CIS has underlined the problems facing the with profits endowments market, by withdrawing its range of the products. The insurer will continue to offer its modern with profits products, however, which include a stakeholder pension and life...

Net form; Digital certificates get belated launch.(Brief Article)
October 1, 2002... Two years after they were first taken seriously and 13 years after the launch of the company charged with establishing electronic standards in the life and pensions industry, digital certificates are finally available. To begin with, the...

NED of the line.(National Association of Pension Funds urges against corporate malpractice)(Brief Article)
October 1, 2002... The National Association of Pension Funds (NAPF) has urged non executive directors (NEDs) of firms to take a stand against corporate malpractice by becoming more willing to blow the whistle. The call comes in the NAPFs submission to a...

Hedge funds for all; FSA publishes discussion paper.(Brief Article)
October 1, 2002... The FSA has issued a discussion paper to examine the case for making hedge funds more readily available to retail investors, as was previewed by Money Management in August. Other onshore centres, notably Italy and Dublin, have changed...

Royal London has seen the future and its grey.(Bright Grey, specialist protection business for intermediaries)(Brief Article)
October 1, 2002... Grey skies, grey hairs and grey expanses of concrete. All of these things are dull. Unless, that is, you are one of the 120 employees of Royal Londons new specialist protection business for intermediaries. The direct to consumer financial...

Scot Life admin glitch; Stakeholder halted.(Scottish Life)(Brief Article)
October 1, 2002... Scottish Life is suspending its move into individual stakeholder after existing administration problems with its group pension schemes worsened. The Royal London-owned specialist pensions provider was expected to introduce individual...

From zero to hero.(electronic transactions expected to increase)(Brief Article)
October 1, 2002... Insurance companies are forecasting that electronic transactions of their life and pensions products will rise from 3% in 2001 to 87% in 2006. The prediction came to light in a survey conducted by Focus Solutions, which provides the insurers...

Fidelity embraces asset allocation.(Fidelity Investments's new asset allocation tool)(Brief Article)
October 1, 2002... Fidelity Investments, the largest retail investment house and the owner of the only fund supermarket available to both IFAs and direct consumers, is launching an asset allocation tool. The launch of Portfolio Planner makes Fidelitys...

Financial advice in 10 minutes.(mPower launches Financial Health Check)(Brief Article)
October 1, 2002... US based software house mPower is launching a Financial Health Check that will produce a 10 page personal financial plan following a 10 minute consultation with a client. Features on the software tool include mortgages, savings, protection...

Money back annuities; NU hopes to launch by summer 2003.(Norwich Union meets with Inland Revenue)(Brief Article)
October 1, 2002... Norwich Union (NU) is one step closer to its goal of launching money back annuities, following its recent meeting with the Inland Revenue. Ian Beggs, a spokesman for NU, said, "There appears to be a move by the Inland Revenue to get things...

Internet network slashes costs; Online portal a third cheaper than existing networks.(from Virtual Net for investment advisers)(Brief Article)
October 1, 2002... cost conscious IFAs now have the opportunity to save one third of their network costs by becoming members of new online only network Virtual Net. IFAs will benefit from the substantial cost savings only if they are prepared to research...

Zurich joins with Newcastle to offer products.(Zurich Financial Services, Newcastle Building Society)(Brief Article)
October 1, 2002... Zurich Financial Services has announced a new partnership with Newcastle Building Society, making the life assurers range of pensions, investment vehicles and insurance products available to the building societys 450,000 members. The move...

Treasury changes cash isa rules.(Inland Revenue says investors are not locked into cash Isas)(Brief Article)
October 1, 2002... From 1 October 2002, investors will no longer be locked into cash Isas now that propositions from the Inland Revenue have been approved by the Treasury. Withdrawals and transfers of cash Isas will be possible if 30 days notice is given....

MM website to carry jobs.(Money Management)(Brief Article)
October 1, 2002... Money Managements website, www.ftadviser.com, is about to improve the service that it offers by including recruitment advertising. Money Management, along with our sister publications, carries details of four times as many jobs as our...

Bond conflict of interest.(financial advisors complain about Platinum Capital Management investment bond)(Brief Article)
October 1, 2002... Platinum Capital Management has been attacked by IFAs for offering inducements to sell its new offshore investment bond, the Platinum Wealth Management Bond. In addition to commissions of 4-5%, intermediaries selling sufficient numbers of...

R&SA is worst pensions review offender; Provider hit with largest FSA fine ever.(Royal and SunAlliance, Financial Services Authority)(Brief Article)
October 1, 2002... Troubled insurance company Royal & SunAlliance has been saddled with the largest ever fine for personal pensions mis-selling just three weeks after it shut its life and pensions business. The GBP1.35m fine from the City regulator is more...

Full inheritance of Serps ends; Widows to get only 50%.(state earnings related pension scheme)(Brief Article)
October 1, 2002... As of 6 October 2002, widows and widowers will no longer be able to inherit 100% of their spouses pension. Under a change in law dating to 1986, the amount of inheritable state earnings related pension scheme (SERPS) pension will gradually...

GBP786m L&G rights issue.(Legal and General)(Brief Article)
October 1, 2002... Legal & General (L&G) has announced a GBP786m rights issue, representing 13.5% of its market capitalisation. Under the terms of the issue, underwritten by UBS Warburg and Dresdner Kleinwort Wasserstein, 13 new shares per 50 existing ones...

COMMENT: Fortunes of war.(Brief Article)(Editorial)
October 1, 2002... All the preoccupations of the modern age were swept away on 11 September 2001 if only for a short while. Gone were concerns about pensions, ISAs and stock market investments. Today, with the hindsight of slightly more than a year, those...