Defaqto on MAM Funds' Acuim Multi-Cap Income Fund
View of Defaqto insight analyst for funds Fraser Donaldson
Donaldson says: “The investment objective of the fund is to produce an attractive level of dividends coupled with capital growth over the longer term.
“The fund will invest primarily in quoted UK companies with a wide range of market capitalizations, but a long-term bias toward small and mid cap equities. The company may also invest in large cap companies, including FTSE 100 constituents, where it is believed that this may increase shareholder value. There will be no particular emphasis on any industrial or economic sector.
“The fund may also invest in collective investment schemes, cash, money market instruments, other transferable securities and derivatives and forward transactions.
“MAMFunds may well be relatively unknown for many advisers. This launch forAcuimis the first for this new brand adding to its other more established brands of Midas and Miton.
“The fund’s lead manager is GervaisWilliams, managing director of MAM, who is well known from his time at Gartmorewhere he was head of UK Small Companies, investing in UK smaller companies and Irish equities. The funds co-manager is Martin Turner who joined MAMFunds in May 2011 to work alongside Williams.
“Advisers seeking income for their clients will, I’m sure, want to take a good look at this fund where dividends are distributed quarterly. With a bottom-up investment approach and highly diversified portfolio with around 80-120 stocks, the fund is able to invest across the whole market with no capitalization bias. At launch it is expected that the fund will adopt a 10 per cent weighting in FTSE 100 stocks, 25 per cent in FT Midcapstocks and 65 per cent in AIM and small/micro cap stocks.
“Williams has an excellent track record of outperformance in the small cap market. There has been a number of income fund launches of late but advisers may take comfort in the knowledge that the manager’s previous history sets him apart from the crowd.
“With the wide range of funds available in the UK Equity Income sector this fund could easily complement any existing holding within a clients portfolio, with its benchmark free and unconstrained marketcapitalisation approach.