BWD Rensburg is taking the aggressive view to the UK market.
Its aggressive growth fund is a unit trust that will invest in between 25 and 40 companies, with a minimum exposure of 1.5 per cent in any one company. At least 50 per cent of the initial spread will be in the FTSE 350 index, with the remainder in the FTSE 100, FTSE 250 and FTSE allshare indices. It may have a small number of European funds in it and the fund also has the potential to invest in bonds, but this is expected to be a rare occurrence and never total more than 1 or 2 per cent of the fund.
Although the fund will not benchmark any index, it is expected to outperform the FTSE allshare index over the medium to long term. Aggressive growth should appeal to experienced investors who are happy with a high-risk product that offers growth.
It will be managed by director and fund manager Mark Hall, who has been working for BWD Rensburg since May 1988. From 1997 to 2001 he managed the UK equity growth fund for the company, before moving over to the aggressive growth fund.
There is still uncertainty about how far the war in Afghanistan will spread and how long it will last. Many investors are in a cautious mood and may not want to invest in such a high-risk aggressive fund. On the other hand, those investors who accept the risk might be tempted to invest now while prices are low, hoping that things will improve over the long term.
According to Standard & Poors the BWD equity growth fund is ranked 115 out of 242 funds, based on £1,000 invested on a bid-to-bid basis with gross income reinvested over three years to October 10, 2001.