Collins Stewart is aiming to establish an onshore track record with the Collins Stewart growth fund, an Oeic fund of funds.
The fund invests in between 15 and 20 externally managed funds and is benchmarked against the FTSE Association of Private Client Investment Managers and Stockbrokers (APCIMS) growth index. It will diversify across bond and equity markets, while including a mixture of investment styles. It is also geographically diverse, covering the UK, North America, Europe, Japan and emerging markets. Examples of funds in the portfolio include Credit Suisse monthly income, Gartmore UK focus, Aberforth UK smaller companies and Martin Currie Japan.
The UK represents the largest percentage of the fund at 42 per cent and this is partly because the APCIMS index has a strong UK bias. Collins Stewart also believes the UK offers better growth opportunities relative to other regions, with good quality undervalued stocks that can be bought cheaply.
The fund will invest in funds which consistently outperform their benchmark indices and a team of analysts will consider factors such as past performance and volatility when selecting funds.
Investing in a fund of funds may be attractive in an environment where few funds and fund management groups are consistently good performers in all sectors at all times. However, investors will incur additional expenses for investing in the underlying funds.
According to Standard & Poor's, the Collins Stewart international growth fund is ranked 22 out of 149 funds based on £1,000 invested on a bid-to-bid basis with gross income reinvested over one year to September 6, 2002.