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Dresdner creates niche

Dresdner creates niche

Dresdner Strategic Investment Fund

Type: Guernsey-based fund of funds.

Aim: Growth by investing in Dresdner RCM unit trusts and offshore funds.

Minimum investment: £2,000.

Place of registration: Guernsey.

Investment split: 52.65 per cent UK, 45 per cent Luxemburg, 1.9 per cent sterling, 0.45 per cent North America.

Charges: Initial 5 per cent.

Commission: Initial 3 per cent.

Tel: 01481 709690.

Nick Upton, independent financial adviser, Ian Cooke & Partners,

Peter Chitroda, chief executive, Allied Grosvenor Financial Management,

Barry Laymond, proprietor, Barry Laymond Financial Services,

Johnathan Elms, Partner, Teare Rose,

Steve Crowe, Managing director, Bowland Financial Management.

Company’s reputation 7.2

Flexibility 4.0

Charges 6.2

Commission 3.8

Product litrerature 7.0

The Dresdner Private Banking Strategic Investment Fund is an offshore fund of funds based in Guernsey. It aims to achieve growth by investing in Dresdner RCM unit trusts and offshore funds.

Commenting on how the product fits into the market, Chitroda says: “It is a niche product – essentially a fund of funds that appears to have been aimed at the quality market rather than the quantity one.”

Elms thinks it is yet another choice in a fairly overcrowded sector. Laymond says: “It is a product for those specialising in offshore business which is as good as you can get.”

Crowe says:”As an offshore fund, it has some place in the market, but it is limited to more specialist investors.”

On the product’s flexibility, Chitroda says: “It is a standard offshore product – there is no further flexibility offered.” Laymond says: “There is no flexibility of investment choice for the investor. Elms offers a different view. He thinks the flexibility is reasonable.

Moving on to the type of client for whom the product is suitable, Upton says: “In my view, it is suitable for non-tax paying UK residents requiring growth and income having already used up their Isa allowance. Conceivably, it may appeal to overseas residents, depending on their tax status.”

Crowe identifies clients looking to achieve growth on an international basis in offshore funds. Chitroda says: “Someone looking for capital growth, yet who does not necessarily want a large exposure to any individual local market – essentially diversification.”

Turning to the marketing opportunities the product is likely to provide, Laymond says: “It is an excellent product for clients with large sums to invest who do not wish to have any involvement in the investment decisions, but who do want to benefit from the expertise of a major banking house.” Chitroda can see no marketing opportunities and feels the product is not unique in any way.

Crowe thinks marketing opportunities are limited for UK residents. But he adds the product could be targeted towards clients looking at retiring in five years and where income is expected to become lower than at present.

Elms says: “New investors may be attracted by the cash available to invest in new opportunities. Many competitors do not have this liquidity.” Upton thinks it might be most useful to advisers dealing 100 per cent with investment clients.

Identifying the main strong points and useful features of the product, Upton says: “Clients can have a geographically widespread asset base.”

Laymond says: “This major investment house has daily information fed in every day from its worldwide offices and they hold video conferences every morning. They are therefore able to anticipate moves in the market before they are common knowledge. This means rapid action to take advantage of markets going up or down.”

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