Type: Offshore Oeic
Aim: Growth above the FTSE All Share Index by investing in UK equities
Minimum investment: Lump sum £5,000
Investment split: 100% in UK equities
Place of registration: Dublin
Charges: Initial up to 5%, annual 1.5%, performance fee 20%
Commission: Initial 3%, renewal 0.5%
Tel: 020 7523 4527
Collins Stewart’s UK focus fund invests in 20-30 UK companies that are undervalued at the time of investment.
Highclere Financial Services partner Alan Lakey says: “Until now, Collins Stewart has concentrated on running three managed funds which have displayed an indifferent performance. By attracting David Shapiro from Morley Fund Managers, it has signaled an intention to make a serious attempt at the retail market,” he says.
Lakey notes that Shapiro favours a value approach that is popular in the US. This investment style envisages a longer term holding for favoured stocks. “During Shapiro’s tenure at Morley its UK funds displayed regular first quartile positioning. However, like any new fund, the proof will be evident over the net few years,” says Lakey.
Looking at the product literature, Lakey says: “The descriptive brochure which they term an owner manual is extremely persuasive and reader-friendly. It attempts to demystify the investment process and encourage the reader by common-sense descriptions of its process and by reference to Warren Buffett, Ben Graham and Phil Fisher,” he says.
Lakey regards the initial and annual charges as typical for this sector, but points out that there is potentially an additional performance fee that is not typical of the sector, This fee is based on consistent outperformance of the FTSE All Share index.
On the downside, Lakey has concerns about the Collins Stewart fund’s ability to compete with its more established peers. “The UK growth sector is extremely competitive and most advisers will not be willing to shift from their favourites. Among the competition will be Old Mutual, Artemis and M&G,” he says.
Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Average