WAY CONDUCTS IFA SURVEYIFAs say income products fail to meet investor needs.
 Nine out of ten IFAs do not believe their clients are getting suitable income products, a survey has suggested. Ninety-three per cent of (the one hundred) IFAs questioned by fund of funds manager WAY Group (during the month of July 2007) said the income needs of investors were not being met. The vast majority of those surveyed - 94 per cent - said they wanted products with a guaranteed level of income as well as the opportunity for growth of underlying income and capital. The tax efficiency of income products is the highest priority for all IFAs, while more than 90 per cent demanded consistent monthly income streams, the survey also revealed. Paul Wilcox, chairman of the WAY Group, said: "Our research reflects a resounding "yes" on behalf of IFAs looking - often in vain - for income products with key specifications. "While certainty of income in a volatile climate is clearly a major consideration for IFAs wanting to reassure nervous clients, it is clear that plans that deliver both income and growth while factoring in maximum tax efficiency, are the holy grail." In a bid to win over more investors, the group has re-launched its Income Plan and halved the charges of the cash element to 50bps. The plan splits investors' capital into two strands - 25 per cent goes into the cash element, from which a pre-determined monthly income stream is generated, while the remaining 75 per cent goes into a growth portfolio actively managed by IMS. Please Note: This commentary first appeared in Investment Adviser magazine on 6th August 2007. Reproduced with kind permission. Note: This commentary has been prepared for Financial Intermediary Clients and Professional Associates of WAY Investment Services Ltd and is not intended for and must not be distributed to Private Investors. This information is supplied to you in confidence and you may not pass it on to any other party without prior written consent. Past performance is not necessarily a guide to future returns and changes in rates of exchange between currencies may cause the value of investments to rise or fall. No representation or warranty is given (express or implied) as to the accuracy, completeness or correctness of the information nor the opinions, interpretations and conclusions contained in this commentary. The commentary does not constitute investment advice or a recommendation to purchase or sell any security. Neither the author nor WAY Investment Services Ltd accept any liability whatsoever for any loss or damage arising in any way from any use of or reliance placed on the commentary. WAY Investment Services Ltd is an Appointed Representative of WAY Fund Managers Ltd which is authorised and regulated by the Financial Services Authority. Press Release Date: 6th August 2007 |