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Clerical pushes fund solution arm
Clerical Medical Investment Solutions has been launched and is designed to support IFAs run their business
This is the best time to launch a new investment solutions business for IFAs, according to John Van Der Wielen from Clerical Medical.
Clerical Medical Investment Solutions, which is launching 18 new funds bringing the insurance company’s total number to 36, said that it was not turning into a fund manager but is becoming an investment solution provider for financial advisers. It is also launching a portfolio modelling tool which will assist IFAs with portfolio construction.
Mr Van der Wielen, managing director of Clerical Medical, said that the launch of Clerical Medical Investment Solutions is about it doing the right thing for IFA’s and their clients.
He said: “IFAs want choice. Instead of us being a traditional life and pensions provider we are moving into the fund space and designing mandate funds that will put us back on the map.
“While there is turmoil in the market this is the best time to invest. IFAs and consumers want improved terms, and they will be looking at alternatives. We believe now is the right time to launch new funds.
“We have been planning Clerical Medical Investment Solutions for the past two years – during the bull market – and our launch during the bear market could not be better.
“There has been a shift towards non-interest related income from insurance companies, which is investments that do not have exposure to debts or the credit crunch.”
Clerical Medical Investment Solutions announced its new investment committee, which consists of Patrick Gale, who launched IFA network Sesame.
Mr van der Wielen said: “The new investment committee will ensure that mandates are met. The portfolio modelling tool will help IFAs pull together. The combination will make IFAs’ lives easier.”
Clerical Medical refused comment on its future as a result of the possible merger between its parent company, HBoS and Lloyds TSB.
It said that that it was too early to say as integration could take up to three years.
Bridget Benson, as IFA for Manchester-based Gaeia Partnership, said she was concerned about who is going to own Clerical Medical’s parent HBoS in the future.
She said: “We liked Clerical when it was a mutual, then it demutualised which resulted in the dilution of a quality brand. We still use it because we like their ethical fund range and research. The uncertainty about who will own HBoS, Clerical and Insight, which is also owned by HBoS, is causing confusion for IFAs.”
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