View more on these topics

Cheviot Capital rolls out first unit trust

Stockbroker Cheviot Capital has introduced a unit trust for the IFA market to be run along the same lines as its discretionary and advisory portfolio management services.

Cheviot Capital was established in 1993 as the investment arm of chartered accountants Kingston Smith. It currently runs a discretionary portfolio service and an advisory portfolio service, which have a combined value of £100m.

The CF Cheviot managed fund will aim for growth by investing initially in a mix of 85 per cent equities, 10 per cent fixed interest and 5 per cent cash. The company believes flexibility in asset allocation is the most important factor in achieving investment returns and holds monthly meetings to reach a collective view on regions and asset classes.

The fund will be managed by the investment team which is headed up by Phillip Arghebant. There will be between 40 and 50 equity holdings predominantly selected from the FTSE 100 index. Arghebant and his team will analyse individual stocks in terms of balance sheets, growth rate, profitability and cash flow. They are keen on companies yielding between 3 per cent and 3.5 per cent.

Kenneth Levy, chief executive of Cheviot Capital and former managing director of the Gerrard unit trust group, says the fund is biased towards the UK because it is showing signs of reasonable growth and valuations are attractive. Levy says corporate profitability in the US is set to improve due to cost cutting and reorganisation, which he also sees happening in the UK.

Asset allocation is becomingly increasingly important as investors chase positive returns in difficult markets and this fund&#39s flexibility to match asset allocation to market conditions is a strong point. However, IFAs may prefer to recommend funds from established managers that have long track records and this may be a problem for Cheviot in attracting new money.

Recommended

Regulatory fines are based on your bank balance

I would like to refer to the editorial in the August 7 issue of Money Marketing regarding, PI questions that need answering. There is quite a severe backlash to the comments that small IFAs should go for professional indemnity opt-outs, provided they have the capital to meet potential claims -if you have a lot of […]

Master Adviser drops Invesco for Millfield investment

London IFA Master Adviser has criticised Invesco Perpetual for pumping money into loss-making national IFA Millfield Group. The firm has suspended all dealings with Invesco Perpetual, saying it will not place any of its clients&#39 money in Invesco funds as it cannot trust an investment process which views Millfield as a solid investment. Misys member […]

Move towards savings for long term

Lender Abbey National&#39s latest research shows a move away from short term goals for saving like holidays towards long term reasons like old age, property and children.

Stakeholder architect

Stakeholder architect Paula Diggle is now involved in the Hutton Inquiry into the death of arms specialist Dr David Kelly. The civil servant is clearly seen as the person for the tough job, cutting her financial teeth forcing through the pension review, pivotal in the creation of the Isa and having helped set up Cat-standard […]

Don’t play chicken with the Bank of Japan

By Josh Ausden, Head of Client Investment Strategy, Neptune Short-term yen strength has hurt the Neptune Japan Opportunities Fund but recent events have only added weight to our conviction that the Bank of Japan will act to ease policy, boosting multinationals’ profits and weakening the yen. In recent weeks the performance of the Japanese stockmarket […]

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