Still on top Meet the winners of the What Investment Readers Awards When you want to find out what a company is really like, you talk to its customers. That is the principle behind the What Investment Readers Awards. The winners of these awards are determined not by industry experts, or even magazine journalists, but by you, the readers of What Investment. There was no shortlist: you were free to vote for whoever you wanted in each of 12 categories. The dozen winning companies are quite simply those whose service was endorsed by the largest number of readers. Regular subscribers will notice that many of the companies on this year s list also emerged victorious in last year s Readers Awards. That is interesting, given the amount of activity and turmoil there has been in the industry since we last conducted the survey. It appears that, in a rapidly changing world, leading companies have been able to maintain their reputation for first-class service. That s despite the fact that, in some cases, they have had to change that service, or how they charge customers for it. Read on to find out more about the winners. Thank you Our thanks to all readers who completed the survey, and congratulations to Moira of Winston, County Durham, who wins 1,000 in investment company shares, courtesy of the Association of Investment Companies (AIC). 30 www.whatinvestment.co.uk
Best Unit Trust/ OEIC Provider Invesco Perpetual Many times winner of this award, Invesco Perpetual did not have the easiest of years. In Best Unit Trust/ October OEIC Provider 2013, Neil Woodford, Invesco Perpetual manager of Invesco Perpetual s flagship Income and High Income funds, handed in his notice taking billions of pounds of investors money to his new venture. Though the funds have seen an estimated 7 billion of outflows over the past year, the performance of Woodford s successor, Mark Barnett, has been impressive since he took charge in April. The Income and High Income funds both rank in the top 10 per cent of the IMA UK All Companies sector over the past six months, and still manage about 19 billion of investors cash between them. The strength of our capabilities lies in the collectively robust nature of our investment team Invesco Perpetual was never all about Neil Woodford. There are plenty of other stand-out funds, with Paul Causer and Paul Read boasting a very consistent record on the fixed income side. Invesco chief investment officer Nick Mustoe remarks, As advocates of genuine active fund management, we are very pleased to have won the award for Best Unit Trust Provider. We believe the strength of our investment capabilities lies in the collectively robust nature of our investment team, which takes seriously the responsibility for creating long-term returns for clients. Best Investment Trust Provider Aberdeen Asset Management Aberdeen Asset Management runs 16 Best Investment investment Trust Provider trusts, many of Aberdeen them focused on Asia and emerging markets. They include Dunedin Income Growth, Aberdeen New Thai and Aberdeen Asian Smaller Companies. The largest Aberdeen trust at 1.5 billion is Murray International, which endured a poor run of performance in 2013 as manager Bruce Stout s cautious outlook on the global economy proved out of step with relentlessly bullish markets. But the more sedate environment of has better suited Stout s style, with Murray International the absolute top-performing trust in the AIC Global Equity Income investment trust sector over the past six months. Other Aberdeen trusts staging a comeback after a disappointing spell include Aberdeen New Thai, which has surged ahead 30 per cent so far in, and Aberdeen New India, which has gained 39 per cent as the country rides a wave of optimism. Aberdeen is unusual in its policy of not naming an individual manager or managers for each fund, and instead emphasising its team approach. Head of closed-end funds William Hemmings observes, We re pleased to have won this prestigious award, not least because it s voted for by investors. It s a reflection of our diligent investment process and commitment to client service. Best Fund Supermarket Best Fund Supermarket Despite an increasingly vocal army of naysayers, there is no doubting s dominance and ongoing popularity with a large portion of What Investment readers. This year, the company walks off with no fewer than four of our Readers Awards, proving that many people continue to place the highest value on its service. That said, it has been a year where has been forced on to the Many people continue to place the highest value on s service defensive. Its introduction of a platform fee of 0.45 per cent to add to its menu of other charges was greeted by angry protest by many of its customers. is a company that has always made a virtue of its customer service, and certainly showed a willingness to listen as it backtracked on a number of fee announcements. It has also increased its research coverage of investment trusts. Danny Cox, head of financial planning at, says, The business was built by providing fund research to private investors, and then a low-cost and easy way for people to buy and manage their investments without the need for financial advice. The expression DIY investing hasn t been around for long, but we have over 33 years of experience helping people to make more of their money. www.whatinvestment.co.uk 31
Best Share Dealing Service Though it is best known as a fund supermarket, Best Share Dealing Service also offers a fully fledged share dealing service. Following the revolution in investment platform charging brought about by the Retail Distribution Review (RDR), has tried to ensure that its share dealing service remains competitive by placing a 45-a-year cap on what it charges customers for holding shares. Its typical online dealing charge is 11.95, though there is a monthly saving scheme offered on FTSE 350 shares and some investment trusts that reduces dealing charges to just 1.50. The 45 cap applies not only to shares but to investment trusts, exchange-traded funds (ETFs), gilts and bonds. had proposed a separate cap for investment trusts, but customers widely viewed this as unfair, arguing that investment trusts were shares, and the proposal was dropped. Danny Cox, head of financial planning at, comments, Awards voted for by investors are always the most pleasing to receive. Readers of What Investment can be assured that we won t rest on our laurels. After launching free live share prices straight from the London Stock Exchange and improved research on investment trusts in, investors will be pleased to know that there are many more enhancements in the pipeline as we continue our aim to provide the best investment supermarket service in the UK. Best ETF Provider ishares For the fourth year in a row, ishares has been voted Best ETF Best ETF Provider Provider by the ishares readers of What Investment. Part of global asset management powerhouse BlackRock, the company offers over 200 exchange-traded funds for the private investor, with more than 500 billion under management. ishares ETFs range from the humblest FTSE 100 and S&P 500 trackers to products that offer access to global forestry or water indices. Other innovative offerings include the ishares Sterling Ultrashort Bond ETF, which invests in bonds with a very short date to maturity as a way of protecting an investor against a potential rise in UK interest rates, and the ishares UK Dividend UCITS ETF, which offers exposure to the 50 highest-yielding stocks in the FTSE 350. ishares head of UK sales Mark Johnson says, We are particularly proud of the products we ve launched in the past 12 months. For example, the ishares Core Series was designed with longer-term investors in mind. It consists of 14 ETFs based on some of the most popular exposures used by investors of all types at some of the lowest prices in Europe. At a more niche and targeted level, we also recently launched the ishares MSCI Emerging Markets Consumer Growth UCITS ETF, which aims to capture opportunities arising from consumers changing spending patterns. Best Spread Betting Provider IG Best Spread Betting Provider IG IG s spread betting service allows clients to bet on everything from the outcome of the Scottish independence referendum to the valuation of a newly floated company at the end of its first day of trading. It s not just about having a flutter. All bets, aggregated together, form a so-called grey market, which often proves to be surprisingly accurate in predicting where a stock price will close on a particular day. Spread betting also offers the advantage of tax-free gains, and the ability to gain instant exposure to a wide range of unusual assets, including commodities and currencies. Spread betting offers the ability to gain instant exposure to a wide range of unusual assets IG Group was founded in 1974 and has been a listed company since 2000. Currently a constituent of the FTSE 250 index, it has over 700 employees globally. In addition to spread betting it also offers contracts for difference (CFDs), which allow investors to take a view on the future direction of indices or asset prices. Commenting on the award, Brenda Kelly, chief market strategist at IG, says: We are delighted to have won this award. At IG, we strive to provide the best trading platform, customer service and education. To be recognised by clients and investors makes us feel very proud. Thank you, What Investment readers. 32 www.whatinvestment.co.uk
Best Cash ISA Provider In 2013, was highly commended in this category (behind Best Cash Halifax) but has gone ISA Provider one better this year to be voted into the top spot by What Investment readers. The interest rate available on all products offered by is dependent on the number of years the investor is prepared to lock their cash in for. An investor who wants instant access to their cash can get 1.25 per cent with the Instant ISA Saver. However, investors happy to lock their cash away for four years can receive 2.2 per cent with the 4 Year Fixed Rate ISA. On all of the cash ISA products, 1 is the minimum investment. The maximum is now 15,000 following the government s changes to the ISA limit this year. In the past year, more than 2 million ISA accounts have been opened with Tracie Pearce, s head of savings, tells What Investment, As a mutual building society, we are totally committed to providing members with great service and products, which is why we are particularly pleased that readers have rated us the best cash ISA provider. In the 12 months to the end of July, more than 2 million ISA accounts have been opened with, which is testament to the competitive nature of our products. Although we were highly commended in the cash ISA category last year, I m delighted that we are ranked top this year. Best Children s Investment Provider F&C Investments Given the prominence that Best Children s F&C gives to Investment Provider F&C Investments its range of products aimed at those seeking to invest for their children, it is perhaps not surprising that the company has been voted Best Children s Investment Provider for the fifth consecutive year. The centrepiece of the company s children s product range is its Children s Investment Plan, which allows investors to save from 25 per month, or a one-off minimum of 250. The plan invests in a range of 12 investment trusts, from straight equities to property and private equity. According to the company, a parent can allocate the maximum annual allowance into a Junior ISA (JISA) or child trust fund (CTF), then invest any surplus after that tax-free via a Children s Investment Plan. F&C s own JISA has a minimum investment of 30 per month, while one-off amounts can be placed in a JISA up to the annual limit of 4,000. In this year s Budget, it was announced that funds within CTFs will be transferable into Junior ISAs, but a child with a CTF cannot also have a separate Junior ISA. Ross Duncton, head of direct to consumer at F&C Investments, says, We are delighted to have been voted Best Children s Investment Provider by readers for the fifth year running. This is a great endorsement for the products and services we offer. Best SIPP Provider Best SIPP Provider As if the changes to platform pricing weren t enough for the investment industry to cope with, providers were also hit with the biggest shake-up of pension rules for a generation. The changes announced in George Osborne s Budget this year will lead to pensioners being able to withdraw as much cash as they want from their pension pots, with no restrictions. There will be no requirement to purchase an annuity. We use feedback from our clients to develop and enhance the Vantage service Although saw its annuity business halve in the year to June as a result of the announcement, there was a corresponding uptick in its drawdown business. Drawdown allows pensioners to keep their pension invested (in a SIPP, for example) while taking out cash as they need it. Tom McPhail, head of pensions research at, comments, We d like to thank all our clients and the readers of What Investment for the Best SIPP Provider award. This is the eighth year running that we have won this award, and we are always grateful to our clients for their continued support and feedback, which we use to develop and enhance the Vantage service. s SIPP charges are similar to those for an ISA or general investment account, except for a higher cap of 200 a year on the levy for holding shares or investment trusts. 34 www.whatinvestment.co.uk
Best Structured Product Provider Investec Structured products that are available to private investors usually offer some degree Best Structured of capital Product Provider protection (complete Investec or partial) combined with the chance to make a better return than cash if the stock market reaches or remains at a certain level. Investec launched its structured product range in 2008, and is one of the largest providers in the field with a range of products aimed at various risk appetites. Its FTSE 100 Kick-Out Deposit Plan 47, for example, is targeted at the more cautious investor. It returns a gain of 5.5 per cent for each year held provided the FTSE 100 is higher than its initial level on the third, fourth, fifth or sixth anniversary of the plan s start date. A more aggressive or optimistic investor might prefer the Investec FTSE 100 Enhanced Kick-Out Plan 47. This can offer a gain of 10.5 per cent a year and has similar terms to the Kick-Out Deposit Plan, with the crucial difference that you may lose money if the FTSE 100 falls by more than 50 per cent over the six-year term. Gary Dale, head of intermediary distribution at Investec, says, We are particularly pleased to have won this award, as it clearly demonstrates that our customer research and product design capabilities are delivering what customers want simple, transparent structured deposits and investments. We aim to continue developing our UK retail proposition to ensure that our customers enjoy the benefits of a wide range of simple, defined passive investment solutions. Best Savings Account Provider One of the few building societies left that Best Savings has a significant Account Provider presence on the high street, has been voted Best Savings Account Provider by readers for the second year running. The company claims that it does not offer better rates to new customers than to existing ones, which has long been a gripe of many savers. The best rate available is 2.5 per cent from s instant-access Regular Savings account, which can be yours if you save between 500 and 1,000 into the account each month. The same account offers lower rates of 1.85 per cent for those who save between 200 and 499, 1.35 per cent for saving between 100 and 199, and 0.25 per cent for up to 99. also offers an account to help first-time buyers save for a mortgage deposit. The Save To Buy account (Issue 2) pays 2 per cent on balances up to 20,000 with the chance to earn a lump sum cashback reward when you take out a mortgage with the building society. Phil Smith, s head of current accounts, tells What Investment, At, we have worked hard to set ourselves apart from the competition and are now seen as the main alternative to the big banks. Our focus has been on combining competitive products with marketleading customer service. Best IFA Best IFA This fourth award for is in recognition of its independent financial advice (IFA) offering. This is available over the phone to those with portfolios valued at 20,000 or more, or face-to-face if you have more than 100,000 to invest. Since the Retail Distribution Review, advice must be billed separately rather than funded by product commission. At, advice generally costs 2 per cent of the value of the investment, but sometimes less. advisers are supported by a research team covering retirement and pensions, open-ended funds, At, advice generally costs 2 per cent of the value of the investment, but sometimes less shares and investment trusts many of whom are regular contributors to this publication. Danny Cox, head of personal investing at, notes, is one of the largest independent financial adviser firms in the country, with 100 advisers based across the whole of the UK. Winning the What Investment Best IFA award is an endorsement of the exceptional quality of advice offered by our financial practitioner team and the unique way in which we work, putting the client and their needs first. www.whatinvestment.co.uk 35