Aim: Growth by investing globally in equities with a bias towards big and medium sized companies
Minimum investment: Lump sum £1,000
Investment split: 100% in global equities with a bias towards big and medium sized companies
Charges: Initial 5%, annual 1.75%
Commission: Initial 3%, renewal 0.5%
Tel: 020 7601 6262
The River & Mercantile global opportunities fund aims for growth by investing in a concentrated portfolio of 40 to 60 global equities.
Discussing the positive features of the fund, Chelsea Financial Services managing director Darius McDermott says: “In assessing a new product, the first thing we look for is manager pedigree. In the case of this fund there lies some considerable form.
“When at Newton, its manager Alex Stanic successfully ran two Dublin-registered funds – BNY Mellon global equity and BNY global intrepid. In July 2005, he took the reins of the onshore Newton global opportunities fund, where up until his departure in February of this year, he had outperformed the FTSE-World Index by 11.51 per cent.”
McDermott says that Stanic’s new fund will be matched against the same benchmark and that he should continue to outperform.
“The fund is focused and flexible, concentrating on 40 to 60 stocks with no geographical or sector constraints. At its core, this is a thematic portfolio and significant plays so far have been the growth of emerging markets, the effect of government stimulus packages, and company de-leveraging,” says McDermott.
He thinks adviser remuneration is broadly in-line in with its peers, while the annual management charge isslightly above the norm.
Turning to the potential drawbacks of the fund, McDermott says: “It is well thought out but not particularly ground-breaking.” He points out that it is launching into a competitive market place with well-established players such as M&G, Fidelity, Rathbone and Neptune.
Summing up, McDermott says: “This fund is not entering the market with anything novel,but what you get for your money is clear: a manager with a strong track record backed by a team of dedicated professionals, albeit a far smaller pool than Stanic will have been used to at Newton.”
McDermott adds that the boutique structure means the team is not constricted to a mandate but free to fully develop a thematic investment process. “I see a lot of positives in this fund and will be keeping a keen eye on its performance,” he says.
Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Good