Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

How Kames is reshaping its institutional offering for a post-RDR world

How Kames is reshaping its institutional offering for a post-RDR world

Kames chief executive Martin Davis has acknowledged that the FCA's ongoing investigation into 'zombie' funds includes historical assets inherited by his firm from parent Aegon.

'When you look at some of the products that we have run for Aegon and Scottish Equitable before it, we have lots of funds in old structures, that may not really do what they said they were going to do,' Davis (pictured) said. 

'The FCA are starting to look through these over [the past] 30 years and they will include some of our funds.'

The watchdog's investigation of so-called 'zombie funds' will commence this summer, covering pensions, endowments, life insurance policies and investment bonds sold in the UK between the 1970s and 2000. The probe will extend to 30 million policies in a market worth around £150 billion. 

Aegon subsidiary Aegon Asset Management UK was rebranded as Kames Capital in September 2011 to differentiate itself from its life company parent, and before that was known as Scottish Equitable.

Davis, who joined Kames as chief executive from Cofunds nine months ago, said he was happy to lose some of the assets inherited from the firm's previous incarnations if the products are no longer suitable for their client base.

'There are areas we are in that do not match the new world, that we have had historically, and we will let these assets drift away as we rationalise our fund range. For us, it’s not all about assets under management, it’s about profitability and having the right assets,' he said.

The launch of the Aegon Retirement Choices platform (ARC) in 2011 has meant that assets coming to Aegon will not automatically transfer to Kames, but Davis said he hopes the newer propositions Kames offer will tempt advisers to stay with the company.

'We are working with Aegon UK to update our offering in the post-RDR world. We would all like these old products to be moved to the new proposition, but that is down to advisers who we hope will stay with us and move over to these products.

'We manage a lot of money for Aegon and we are working hard to update the proposition.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: Affinity’s Julia Warrander on the importance of diversity

1 Comment Profile: Affinity’s Julia Warrander on the importance of diversity

'Sometimes there are 10, sometimes 20 people around a table and, more often than not, I’m the only woman,' says the Affinity Wealth co-chief investment officer

Wealth Manager on Twitter