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FundsNetwork puts investment trusts listing on hold

by Michelle Abrego on Feb 11, 2013 at 11:20

FundsNetwork puts investment trusts listing on hold

Fidelity FundsNetwork has put plans to list investment trusts on the back burner prioritising projects which meet more pressing adviser demands.

In 2012, it was reported that the platform was to list investment trusts ahead of the retail distribution review (RDR).

However, a spokeswoman for the platform said plans for investment trusts had been put on hold for the time being.

‘We have a busy delivery schedule, which has meant we have had to prioritise launches based on adviser feedback and need,’ she said.

She said the platform was ‘committed’ to launching investment trusts, but was ‘unable to commit to a specific date at the moment’.

FundsNetwork beat rival fund supermarkets Cofunds and Skandia to launching an unbundled proposition in April 2012.

It had previously announced plans to offer a range of exchange traded funds and investment trusts, it added ETFs to the platform in June 2012.

8 comments so far. Why not have your say?

Ian Ford-Robertson

Feb 11, 2013 at 12:14

Another announcement from FundsNetwork - and another target missed! I wonder what the more pressing platform developments are? It would be good if they could tell us (for a change).

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Bob Donaldson

Feb 11, 2013 at 13:48

The problem is that advisors remaining independent will now have to find another platform if they are to consider and use Investment Trusts. Fidelity have known about this requirement for some time and whilst everyone has more important things to process, is it a turn they are now taking to placate the restricted community or to build a tie with another life company/bank.

How hard can it be to simply put a range of investment trusts on the system?

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Gillian Cardy

Feb 11, 2013 at 13:51

And somewhat unfair to advisers to suggest that they would be including them, thus helping maintain Independence ... and then not ...

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EVHE

Feb 11, 2013 at 14:08

This highlights that due diligence on platforms should be based on what they actually offer rather than what they promise.

This is not the first time that a supermarket has failed to deliver the promises.

Citywire article...January 2010.....Skandia will have cash accounts, ETFs and investment trusts!

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Colin Fergussion

Feb 11, 2013 at 15:25

What shocks me most is that when you research the ability to hold Investment Trusts on Synaptic and Adviser Asset - many platforms say will take Investment Trusts when they do not!

How many advisers are justifying their choice of Investment Platform on false information?

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Truly Independent

Feb 11, 2013 at 16:32

If you only use one of the big three plaforms, Skandia, Fidelity and Cofunds, then this decision only goes to reinforce the FSA comments in its Platform Guidance Factsheet - "that it is likely to be very rare. if possible at all, that a firm could use one platform for all clients and meet the independence rule".

We used to use all 3 of these platforms but realised last year that we could not cover all of our investment proposition through using them and that they were probably not going to deliver what we wanted in time!

As we did not want to go down the Restricted advice route we now have one of the big three and then two other lower cost platforms with wider investment choices to compliment this, mainly to use with other clients outside of our normal investment proposition.

We have even considered actually using some of the Investment Trusts available, some of which have performed significantly better than their OIEC cousins!

More and more of them will be coming out with a "guaranteed no discount to NAV" to attract more IFA business.

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Emma Napier

Feb 11, 2013 at 18:36

Interesting comments here, and to reinforce platform due diligence is important. Its a good idea to have an idea beforehand what you are looking for a platform for AND for which set of your client bank (they are likely to be different). Make sure the provider does what they say they do and check it works for you. See what actual IFA users think by reviewing the Platforum User Leaderboard aka Trip Adviser. If you don't want to talk to any computers just give PAT a call!!

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Geoff Poland

Feb 18, 2013 at 10:32

I wholeheartedly agree with Gillian Cardy. We invest into Closed End Funds on a regular basis and placed some new business with Funds Network on their commitment to make them available on the platform by the end of 2012.

Having being told that there were pressing RDR requirements, we have now been told that Closed End Funds are delayed again and have now contacted the clients to move the funds onto an unfettered platform. Fortunately the transfers can be done in specie, at no cost or loss to the client, but it does call into the question the relevance of having "several" platforms to meet the FSA's independance requirements

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