View more on these topics

Cornelian enters retail market with hybrid funds

Cornelian Asset Management, formerly Noble Asset Management, is entering the retail market with two Oeic funds which use the same investment process as its discretionary portfolios.

The company runs discretionary portfolios for private clients, charities, trusts and pension funds with a minimum investment of 300,000. But retail investors with less to invest can gain access to the same investment process through the Oeics with a minimum of 3,000.

UK equities and fixed-interest holdings within the CF Cornelian growth fund and CF Cornelian balanced fund will be managed directly by Cornelian investment director Marcus Brooks and his team of six investment managers. Overseas exposure and alternative asset classes such as property, private equity and hedge funds will be accessed through externally managed funds.

The funds will aim for absolute returns without the geographical and industrial sector constraints of a benchmark index. The growth fund is likely to have a greater exposure to equities and alternative asset classes than the balanced fund to reflect its more aggressive objective.

The selection process Brooks and his team use for selecting UK equities and bonds is broadly the same as their method for selecting funds. Asset allocation for each fund is determined through regular meetings and if they do not like a sector or region, they will not invest in it.

On the UK equity and bond side, the team will go for their best stock ideas, taking into account factors such as valuation, dividends, cashflow, whether the company can withstand changing market conditions and how difficult it would be for a competitor to enter that market. On the overseas and alternative investments side, the team will look at how long the fund manager has been in place, assess the underlying holdings and look at the weightings in each fund.

The Cornelian funds are a hybrid of a conventional fund and a fund of funds, which is now possible under Ucits III. Although mixed asset classes in a single fund may have diversification benefits for retail investors, this is a new concept and IFAs may prefer to wait until there is a track record before recommending these funds to clients.

Recommended

Suffolk Life appoints new sales manager

Suffolk Life has announced the appointment of John Nielsen as sales manager, reporting to John Moret, director of sales and marketing. Nielsens main responsibility at Suffolk Life will be building new relationships with IFAs and investment managers.

Reywood and Loud&Clear PR firms merge to form Concise

Public relations firms Reywood and Loud&Clear have joined forces to become Concise Public Relations, operating as a corporate communications consultancy.The new firm began practice on Friday April 1, with a clear remit of delivering an experienced, specialist and cost-effective communication service. All the companies existing clients will now be contracted to Concise, maintaining its specialism […]

Hitachi makes debut with Asu

Hitachi Capital Insurance Europe has entered the adviser market in a partnership deal with Webline to offer the portal’s users a new Asu product.

A&L set for 5m TV campaign

Alliance & Leicester is running a 5m TV advertising campaign. The ads will focus on the banks loans, current account and mortgage campaign, with the first months spend amounting to 1.5m. McCann Erickson Central is the lead agency.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment