ISIS Asset Management (Friends Ivory Sime/Royal & Sun Alliance Investments merger with Friends Provident as majority shareholder) is to launch a new investment product, the ISIS Portfolio Service, aimed at people looking to consolidate their fund portfolios.
A major feature of the ISIS Portfolio Service is that it will protect the initial capital value of the portfolio if the investor dies and the subsequent value is less than that at the outset.
"Many investors have accumulated PEPs, ISAs and other funds on an ad hoc basis over the years through different sources," said Jason Hollands, Director, Head of Communications and Strategy at ISIS, "such portfolios often lack any overall strategy and have exposed the investor to above average levels of risk. There is a real opportunity here for IFAs to sort out the mess.
"Hollands points out that investors who backed the most fashionable funds each ISA season would have made some unfortunate timing decisions: "Dedicated followers of fashion will unfortunately have added a technology fund ISA to their portfolio in early 2000, just before the bubble burst. This March they would have bought an investment grade bond fund, at pretty much the point when the equity market turned."
Our View
An interesting opportunity - there are many so-called fund supermarkets and portfolio managers around with varying degrees of success but the investment protection side does give an edge.
We are sure many other providers will react. The question is really about charges and performance, which we are currently investigating.
Contact us if you would like to find out more about this new service.