Diversification is a key part of any sensible investment strategy. But managing a handful of different investments can be time consuming, and the charges can mount up. The company I represent, Integrity Financial Solutions is delighted to have joined forces with Merchant Investors Assurance Company Limited (“Merchant Investors”) and Sanlam Fund Solutions to offer you an exclusive investment opportunity which gives you that all important diversification but with a minimum of hassle, and at a competitive cost.
The MI Carnegie Cautious Fund
With over 2,000 individual Unit Trusts and OEICs to choose from in the UK alone, creating a flexible portfolio of funds is quite a challenge. Not only does it take time and skill, it is expensive to make fund switches because of initial charges.
However there is an easier and cheaper way to create a diverse portfolio.
The MI Carnegie Cautious Fund is what is known as a ‘Fund of Funds’, an expertly managed portfolio of other funds that can be changed quickly in response to manager moves, economic developments or market events.
The Benefits of the Fund of Funds approach
- Diversification. Investments are spread across a range of regions, sectors, asset classes, and fund management styles in one portfolio
- Easily managed. The fund manager will be adjusting, reviewing and rebalancing the fund holdings on a regular basis on your behalf, saving time, paperwork and cost
- Actively managed. The portfolio is actively managed by a specialist team of investment experts to select the most appropriate combination of funds in accordance with the agreed portfolio mandate
Risks
As with any investment that is in part dependent upon the performance of the stock market, the returns from this fund are not guaranteed. The value of the investment funds and the income from them can go down as well as up and past performance is not necessarily a guide to the future. This means your initial capital investment may be at risk. The performance of funds holding assets denominated in foreign currencies will also be subject to variations in currency rates.
Reassuringly experienced
Integrity Financial Solutions has worked closely with Merchant Investors and Sanlam Fund Solutions to determine fund strategies that may be suitable for their clients.
Merchant Investors offers clients choice, innovation, flexibility and service of the highest quality. Their products are cleverly designed to take advantage of the best opportunities available on the market. All administration is carried out in-house and they pride themselves on the high calibre of their staff. Merchant Investors currently administers over £1.5 billion in assets.
Sanlam Fund Solutions is part of an independent portfolio manager, and has access to the full range of managed funds available in the marketplace. Their managers are experienced at analysing the market and identifying the most appropriate funds to meet the objectives of the MI Carnegie Cautious Fund.
Objective
The MI Carnegie Cautious Fund will be actively managed by Sanlam Fund Solutions, the fund manager selected by Integrity Financial Solutions, and appointed by Merchant Investors.
The main objective of the fund is to provide an attractive total return for clients over the longer term, taking a defensive attitude to risk. This is a low-medium risk fund aimed at growth over periods of at least 5 years. The fund’s peer group is the Association of British Insurers (ABI) Defensive Managed sector.
Is it easy to switch funds?
Yes. You can switch out of the MI Carnegie Cautious Fund at any time by choosing another fund or funds from Merchant Investors’ Pinnacle Range of funds. Switching is currently free within all MI’s products. If you appoint a new financial adviser, you may still be able to invest in the MI Carnegie Cautious Fund.
What will it cost?
The estimated Total Expense Ratio (TER) of MI Carnegie Cautious Fund is 1.68%. Integrity Financial Solutions will receive 0.25% of this total cost per annum.
The legal structure…
- The legal structure of the MI Carnegie Cautious Fund is as follows:
- This fund can only be accessed via pension and investment products issued by Merchant Investors;
- Merchant Investors establishes and administers the fund which is a unit linked fund, the assets of which form part of its long term business fund;
- Sanlam Fund Solutions is the appointed investment manager of the MI Carnegie Cautious Fund;
Merchant Investors has appointed Sanlam Fund Solutions as the investment manager under the terms of the investment management agreement between them, which sets out the responsibilities of the investment manager.
Merchant Investors and Integrity Financial Solutions are authorised and regulated by the Financial Services Authority (FSA). Sanlam Fund Solutions is the trading name of Principal Investment Management Limited, which is authorised and regulated by the FSA. Clients investing in the MI Carnegie Cautious Fund will normally be protected under the Financial Services Compensation Scheme through the product wrappers of Merchant Investors and the advice given by Integrity Financial Solutions.
Merchant Investors, Sanlam Fund Solutions and Principal Investment Management Limited are all part of the Sanlam UK group of companies.
If you want any more information about this exciting new partnership fund just give me a call on the free phone number above.
