Cazenove Investment Managementt has merged its Japanese, North American and Pacific funds to create the global opportunities fund.
This Oeic aims for capital growth by investing in a portfolio of between 60 and 80 global stocks, excluding the UK. Cazenove believes UK investors are more likely to seek exposure to their domestic market through a UK fund rather than a global fund.
The Cazenove global opportunities fund will be managed by the newly-formed global opportunities team, led by Simon Somerville. Somerville joined Cazenove straight from university and has been with the company for 12 years. He has over 10 years' experience of managing Japanese equities.
Somerville will manage the global opportunities fund on a bottom-up basis without reference to a benchmark index. His team will look mainly for large global companies, although smaller companies with good growth potential will also be considered. Stock selection will be based on factors such as the quality of a company's management team, its earnings growth and valuation.
This fund could be useful for investors who want geographical diversification within a single fund, particularly if they already have a core UK fund in their portfolio.
However, as this fund has no benchmark index, the fund manager has the freedom to invest wherever he believes the best opportunities are. This may be beneficial in that the fund manager is under no obligation to hold stocks to comply with specified weightings. But the potential drawback is there is no guarantee the right asset allocations will be made and without a benchmark, investors are relying purely on the fund manager's stockpicking ability.
According to Standard & Poor's, the Cazenove growth portfolio fund is ranked 58 out of 64 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over one year to December 16, 2002.