View more on these topics

Growth fund Chases choosy investors

Considering the drawbacks of the fund, Both says: “It has jumped on the style bandwagon, which means the fund&#39s aims are so non-specific that it is impossible to establish what the benchmarks really are and thus how it is doing. Picking the Standard & Poor&#39s 500 growth index, but saying that the objectives will change undermines the point of a benchmark in the first place.”

French says: “It will suffer during periods of value based rallies in the market.”

Flowers says: “The minimum investment of £5,000 is a drawback. It is a Sicav based in Luxemburg, therefore it is not available as an Isa, although the company is seeking to make the Fleming fund range Isa eligible from mid January.”

Assessing the investment strategy, French says: “It has a different approach to stock selection, but one that has proven successful for Chase Fleming. the fund manager is Henry Lortigue, who is part of Chase Fleming&#39s highly respected investment management team based in Houston, Texas.”

Both thinks it does not have an investment strategy and Flowers thinks it is fairly standard. he says: “It is good to offer the choice of style – growth or value. However, the literature suggests that investors buy the FF-US strategic growth fund and the FF-US strategic value fund in order to diversify across styles. that is an excellent idea, but why not launch a US fund with both styles as part of a diversified strategy?”

Moving onto Chase Fleming&#39s reputation, Both thinks it is excellent. Flowers thinks it is good although relatively unknown in the UK. He also points out Chase Fleming has yet to be tested.

French says: “Chase Fleming is a highly respected investment house with global resources and a disciplined investment philosophy which speaks for itself with funds under management in excess of £120 bn.”

Turning to Chase Fleming&#39s past performance record, Flowers says: “It is irrelevant as the whole investment management structure is being changed with the mix of Standard & Poor&#39s, Fleming and Chase.”

Both thinks the Fleming US micro cap is excellent and that the Fleming US technology and Chase smaller cap funds are good. However, he is not impressed by the Fleming select American smaller companies and feels the performance of the Fleming select American fund is 50-50. He thinks that on balance, Chase Fleming&#39s performance in the US is above average.

French says: “Chase Fleming has a proven and successful track record, not only in respect of this fund, but across the board.”

Highlighting the fund&#39s prospective competitors, Both says: “Every other American or technology fund in existence.”

Flowers suggests: “Either fund of funds identifying the same style-based diversification strategies or known funds already established with a growth or value philosophy.”

French thinks that not many companies will provide competition for Chase Fleming and adds that only Schroder springs to mind.

The panel is split as to whether the charges are fair and reasonable. French says: “Yes, the charges are in keeping with its contemporaries.” Flowers thinks the charges are expensive but Both thinks they are okay. He says: “Being part of an Oeic structure is an advantage. Given Chase Fleming&#39s size, the client does not benefit from any economies of scale.”

Turning to whether the commission is fair and reasonable, the panel is not impressed with the lack of renewal commission. Both says: “It is okay at 3 per cent initial, but the option to take fund-based renewal commission would be good, especially within an Oeic structure.”

French agrees. He says: “It has the usual 3 per cent initial commission which is in keeping with the market. But it is disappointing that there is no fund-based renewal commission.”

Flowers says: “It is a standard 3 per cent initial with no renewal. It is not really flexible enough in the UK.”


Government announces long term care plans

The Government has announced plans to catmark long term care insurance. The widely anticipated move was first predicted in Money Marketing more than a year ago. But the Government is to consult on the exact details of regulation. It is examining four options, a voluntary code of practice with Cat standards but without statutory regulation, […]

Solicitor wants cash to launch legal fight

Armstrong Neal Financial Solicitors is hoping to rally IFAs to start a fighting fund to take legal proceedings against the directors and auditors of Equitable Life. If there is enough support from IFAs and their Equitable clients, the firm is hoping to get a QC&#39s opinion on whether there are grounds for taking an action […]

Windsor act on liability annuities

Windsor Life Assurance is aiming to transform the personal liability compensation market with the launch of the UK&#39s first with-profits structured settlement annuity plan. Windsor, which predominantly operates on a closed-book basis, is launching the plan as it believes the introduction of a with-profits product could improve annuities by up to 69 per cent over […]

Skandia in call for changes to disclosure rules

Skandia is calling for changes to the disclosure regime to ensure consumers know they could be better off saving into commission-based pensions instead of paying for advice via fees. The life office says its latest calculations reveal the difference in pension funds generated by consumers paying fees or commission. One calculation was based on contributions […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm