Comfort in Times of Uncertainty

A recent survey commissioned by Real Advisor* shows that 90% of advisors now use fund supermarkets with 65% of advisors transacting more business through fund supermarkets than they did a year ago.

More and more advisers are starting to realise the significant benefits of holding clients' assets on a single platform. These benefits are even more prevalent in times of increased stock market volatility, as the wide investment choice and product flexibility offered by fund supermarkets can provide comfort for clients. Butcher & Moody were one of the first IFA Practices to embrace this new technology for the benefit of their clients.

Butcher & Moody's MultiManager platform offers the following advantages:

Wide Fund Choice Across The Risk Spectrum
Through MultiManager we can access some of the most highly rated funds across different sectors and managers to reduce risk and create a truly diversified portfolio for clients.

We can build and manage our clients' portfolios using online tools. These incorporate risk profiling, portfolio construction, fund research and reporting into a single seamless process.

Quick, Cost Effective Switching
We can switch quickly and cost effectively between funds, allowing us to react quickly to market changes. In the Real Advisor survey, 83% of advisers considered the ability to switch easily between funds as the most important factor factor when choosing a fund supermarket.*

The MultiManager platform is one of the few fund supermarkets that does not charge an administration fee for switching, with some charging upwards of 0.25% each time the client switches, this can make a real difference to a portfolio.

Pound Cost Averaging
In times of stock market volatility, market timing becomes a real concern for clients. If markets fall, clients tend to react by selling shares rather than buying more. MultiManager offers clients the ability to save on a regular basis from as little as £99 per month, so when markets fall they puchase more units, and when markets rise, they purchase fewer, but over time the price they pay is averaged out.

Access To A Cash Fund
If clients are concerned about their investment, but are either unsure as to which funds to switch into or want a 'safe haven' during a period of market turbulence, MultiManager offers the ability to switch temporarily into cash. This is particularly beneficial for clients in a PEP or ISA wrapper as it provides them with the time and freedom to consider their investment options without affecting their tax efficient status.**

Phased Investment Option
Some clients may want the benefits of pound cost averaging, but want to invest a lump sum straight away rather than set up a direct debit. MultiManager offers a phased investment choice for clients, enabling them to invest a lump sum into 'safer investments' with phasing over time into their chosen portfolio.

These benefits should help to reassure you should the current levels of market volatility continue.

* Incisive Research's Real Adviser Inquiry 1 June 2006
** HM Revenue & Customs rules only allow clients to hold cash temporarily in their ISA or PEP. For ISA, interest earned on cash holdings is subject to a 20% charge by the HMRC.