View more on these topics

Chase Fleming gets dynamic about Europe

CHASE FLEMING ASSET MANAGEMENT

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.”

Recommended

Threadneedle Isa ads on computer-controlled sites

In a UK-first, Threadneedle Investments is promoting its Isas on computer-controlled, floodlit outdoor poster sites. Threadneedle says it is the only financial company to advertise on the new poster system brought to the UK by Firstlight. Each poster unit is fitted with a cassette storing 12 individual posters ready for display when triggered. The posters […]

AMP withdraws from Equitable negotiations

Aegon UK, the British subsidiary of the Dutch insurance giant, has withdrawn from negotiations to acquire Equitable Life&#39s assets. Aegon had been seen as the front-runner for Equitable until the announcement. Its withdrawal leaves Australian insurer AMP as the sole potential buyer. AMP presently derives more than half of its business in the UK. If […]

A&L feeling confident

Alliance & Leicester is to sponsor hit TV quiz Who Wants to be a Millionaire. A&L takes over from current sponsor NTL this month in a move which marks its return to TV advertising after a two-year absence. A&L says the move is aimed at raising brand awareness.

Tracey Dyeer

With interest rates and inflation at their lowest levels for years and low-margin stakeholder pensions on the horizon, investors and IFAs are looking for alternative vehicles for savings and investments other than the traditional bank and building society deposit accounts. I believe offshore products should be among them. We are all aware of the potential […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com