PMS/MM & Fund research

Question 1

What are the minimum amounts required to open a PMS account?

Answer 1

£50k

Question 2

Which two overlays are available across all PMS strategies and what is the maximum OCR for both?

Answer 2

Income - OCR is 0.75bps,

Question 3

Sustainable PMS

Answer 3

Sustainable investment - OCR is 0.5bps - 0.75bps

Question 4

If a fund is highlighted green on a PMS Sustainable Portfolio what does that indicate?

Answer 4

Ethical Fund ( Fits the MorningStar definition of socially conscious)

Question 5

If a fund is highlighted yellow on a PMS Sustainable Portfolio what does that indicate?

Answer 5

Responsible investment funds

Question 6

What are the 5 MM Strategies?

Answer 6

5 strategies (Absolute return, Cautious, Balanced, High Income, Growth)

Question 7

What are the MM fees?

Answer 7

1.2% + VAT - transaction comm is flat £30

Question 8

What are the PMS fees?

Answer 8

1.35% inclusive of VAT (1.2% thereafter)

Question 9

Who is the head of Fund research?

Answer 9

Gordon Smith

Question 10

Which service is perceived to have a greater level of volatility/is higher in risk, PMS or MM?

Answer 10

PMS

Question 11

Why does PMS have a great level of volatility?

Answer 11

PMS doesn’t have the ability that MM has in terms of absolute return. MM can hedge against market downfalls (PMS loses when the market falls)

Question 12

What is the average or targeted OCR for PMS and MM?

Answer 12

0.5% for PMS and 0.75% for MM

Question 13

What impact do these overlays have on the average OCR?

Answer 13

The overlays can increase by 25bps so PMS will rise to 0.75% and MM to 1%

Question 14

What sort of portfolio yield would you expect if you opted for the income overlay?

Answer 14

3.5% (gross, before tax and fees) but this will push the underlying OCR up.