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F&C screening shows holding power

F&C director of fund of funds Richard Philbin has disclosed the low levels of turnover of holdings on the firm’s multi-manager distribution fund.

The fund has grown to £60m just 14 months after launch. Due to steady inflows, it has placed more than 350 deals since launch, with only two of these being sell notes, says Philbin. The fund’s price is up by 13.6 per cent over a year and is ranked third in the cautious managed sector.

Philbin says some multi-managers adopt a revolving-door approach to fund management, buying big volumes but selling almost as much. He says F&C’s proprietary screening process aims to identify funds with the right characteristics, meaning its managers do not need to be hopping in and out of funds over short periods.

The F&C screening process is called traffic light analysis, rating funds green, amber and red, and has featured heavily in the company’s advertising.

Philbin says: “Our process means we are only likely to sell a holding following an event that prompts a complete review, such as a change of manager or process.”

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