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Chase Fleming gets dynamic about Europe


FF-European Dynamic Fund

Type: Sicav.

Aim: Growth by investing in European stocks.

Minimum investment: Lump sum £2,000, monthly £50.

Place of registration: Luxemburg.

Investment split: UK 21 per cent, Austria 0.5 per cent, Belgium 1.5 per cent, Denmark 3.4 per cent, Eire 1.1 per cent, Finland 2.7 per cent, France 19.2 per cent, Germany 12.2 per cent, Italy 10.5 per cent, Netherlands 8.9 per cent, Norway 2.1 per cent, Portugal 1.1 per cent, Spain 1.8 per cent, Sweden 3.5 per cent, Switzerland 7.5 per cent, Cash 3 per cent.

Isa link: Yes.

Charges: Initial 5 per cent, annual 1.5 per cent.

Commission: Initial 3 per cent.

Tel: 0800 727770.

Suitability to market 8.0

Investment strategy 8.3

Company’s reputation 7.3

Charges 5.0

Commission 6.3

Product literature 4.0

Chase Fleming Asset Management has brought in the FF-European dynamic fund, a Sicav that invests in a wide spread of stocks across Europe,

Looking at how the product fits into the market, Jordan says: “This is a speculative product, offering a higher return for a higher risk and relying on selective stockpicking. It is adding to a sector which is growing in popularity. However the fact there is not a high level of competition, along with recent market volatility, could mean that Chase Fleming has picked the right time for a launch.”

Flowers says: “There are an increasing number of European funds coming onto the market. The fund seeks to distinguish itself by moving up the risk scale and not being tied to a benchmarking policy.”

Chapman says: “This product offers investors a pan European all out capital growth investment without any constraints on benchmark indices.”

Moving on to the type of investor that the product is suitable for, Flowers says: “This is for the higher risk investor with an investment focus rather than a tax of financial planning focus. This holding would be a portion of a larger portfolio.”

Chapman says: “This is for the more sophisticated higher tax rate client, rather than the average investor.” Jordan says: “The product is suitable for clients with larger portfolios who are willing to accept measured risk for potential long term growth. Investors will need to counterbalance exposure in this market with a lower risk investment elsewhere in the portfolio.”

Moving on to the marketing opportunities that the product provides, the panel is not positive. Jordan says: “This product is not offering anything new and is just a competitor to other funds.”

Flowers says: “This only offers marketing opportunities to those investors who can be identified as having significantly sized portfolios and a higher risk profile. Chapman adds: “There are no marketing opportunities here. However we may look to include this fund in some of our offshore higher risk portfolios.”

Identifying the main useful features of the product, Flowers points to Chase Fleming investment management’s resources, as well as its name. Chapman says: “One strong point is the investment style of capital growth, whether this is by value or growth investing and not being constrained by being benchmarked against one index.”

Jordan says: “A stockpicking fund should be better placed for growth in the short term rather than a rigid, benchmarked weighted fund. Also, Europe is still providing good value opportunities, particularly technology related ones.”

Turning to the other side of the coin and looking at the drawbacks of the fund, Chapman says: “Being an offshore fund still puts clients off, although the company will probably launch an offshore version as it has with its UK dynamic growth fund, which is also managed by Ross Hollyman.”


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