Consumers dip their toes back into investments: Parmenion

Investors are testing the asset waters for volatility

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Increasing numbers of consumers are "trickling" money on to the market to guage volatility in different asset classes claimed Richard Mein, managing partner for Parmenion Capital Partners.

Referring to the growing tentativeness of clients, Mr Mein said more clients were choosing to have a cash feed on an account, exposing only small amounts of cash to certain assets.

He said: "We have always had this facility but it has really taken off in recent months. It means investers can manage how much is being put where and they do not have to put one lump sum in one area all at once.

"Although consumers are more aware of risk it is interesting to note how we have clients who are still not averse to putting money in our high risk or specialist fund. It is heavily biased towards resources yet it has seen a good comparable performance when set against out fixed-income and managed cash options."

Mr Mein said it was important IFAs and clients took a strategic approach to picking assets with a long-term view. On this basis, he said investment in its property fund had remained stable as it was being evaluated with the next 20 years in mind.

He said: "Property is not going to totally disappear in value over the next year and it will bounce back. All of our funds are good choices with absolutely no exposure to sub-prime and any fluctuations are to be expected."

Mr Mein said he had experienced increasing demand to offer IFA firms bespoke platforms which, in turn, would add to the client experience.

He said: "Having the right asset classes and fund managers are essential but it is important an IFA brands his experience so that he builds up customer loyalty. Before the adviser was viewed as someone who handed over all control to the fund manager who made all the decisions and that was the end of that.

"By building bespoke platforms, investment houses can move away from one-size-fits-all approach and allow intermediaries to have more freedom in how they invest money for their clients."

Mr Mein confirmed Parmenion was investigating the possibilities with the aim to introduce a bespoke platform for three firms this year.

He said: "We hope to extend past the three in 2009 as we must always be aware that we need IFAs and must help them when it comes to making investment choices for clients."

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