UK - Bedlam Asset Management is offering pension funds £10,000 and a three-month fee holiday in a bid to lure them from Cazenove Asset Management.
Bedlam – which operates a “no gain, no fee” price structure – believes Cazenove clients are dissatisfied with its performance and the uncertainty about its future status.
Cazenove’s brokerage parent company has put itself up for sale and is in the process of reviewing offers.
Bedlam says pension funds and other investors rarely benefit when their contracted asset managers are sold and is trying to entice Cazenove clients by giving them £10,000 for every Bedlam fund they invest in and a three-month management fee holiday.
Bedlam founder Jonathan Compton (pictured) said the firm would only take a Cazenove client on if it could guarantee to cut their costs and investment management fees by at least 20%.
Aside from lower fees, schemes would also benefit from Bedlam’s absolute return-style of long-only investing.
Compton said: “Fund managers are paid a fee, usually a fixed percentage of assets, whatever they do. Customers are then boxed up and sold to another fund manager. As a business model it is genius but institutional clients rarely have a choice.
This offer is real, made in the belief that trustees should have an alternative to their portfolios being sold without any benefit to the beneficiaries.”
Although Cazenove declined to comment, sources within the firm dismissed Bedlam’s offer as an “advertising stunt”.
They added that while Cazenove’s record was poor two years ago, the problems had been corrected after it brought in an investment team from HSBC Asset Management.
Females can expect to live a greater number of years in poor health than males, according to data from the Office for National Statistics (ONS) for 2015 to 2017.
Scottish higher-rate taxpayers will benefit from more pensions tax relief than workers on the same salary anywhere else in the UK as income tax bands continue to diverge.
Schemes risk breaking the law and being forced to wind up as The Pensions Regulator (TPR) warns some may be master trusts but do not know so.
As a hectic 2018 draws to an end, Jonathan Stapleton wishes readers a quieter 2019.