Learning from the mistakes of the past

news ANALYSIS

Recent spate of fund of fund vehicles from advisers have learnt lessons from failure of broker funds, although some doubts remain

As an ever growing number of intermediary firms make plans for in-house funds of funds (Fof), the groups are battling against fears the vehicles will resemble the much-maligned broker funds of the mid 1990s. The traditional broker fund faded out of the industry a decade ago after regulatory and media pressure criticised the high charging structures, lack of independence and underperformance of vehicles offered to clients as default invest- ment options. Now, firms including Money Portal, John Scott and Partners (JS&P) and Buckles, are exploring launching their own Fofs, with most fairly...