IFA firm Buckles Investment Services is targeting other IFAs and their clients with its Snowdonia fund of funds range.
The snowdonia Oeic consists of three funds - snowdonia income, snowdonia balanced and snowdonia growth. The management of the funds will be outsourced to different investment managers.
The snowdonia income fund will be managed by Premier investment director David Hambidge, who joined Premier in 1987. He was part of the investment team which established Premier's funds of funds in 1995 and with the Snowdonia fund, will use the same investment strategy as Premier's selector income fund.
The Snowdonia income fund has a target yield of 4 per cent a year and will be managed against a composite benchmark made up of the FTSE All Share and All Stocks gilt indices. Up to 60 per cent of the portfolio will go into UK equities, while the remainder will be invested in bonds and cash. Typical holdings include Neptune income and Mellon Newton income.
Many companies are bringing out funds which reflect their own take on the multi-manager trend, but those offering a range of funds tend to manage them in-house or outsource them all to a single investment management company. Buckles points out that although the underlying managers will be different, it is often the same manager choosing the funds. Buckles strategy of employing three different groups across the fund range may provide greater diversity.
Data from Trustnet shows the Premier selector income fund is ranked 5th out of 25 multi-manager funds in the income and bond sector over three years to November 1, 2004. It returned 16.8 per cent over this period compared with the sector average of 11.3 per cent. However, this falls short of the 24.5 per cent return produced by the top performing New Star monthly income fund over the same period.