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Growth fund Chases choosy investors

Chase Fleming Asset Management



FF-US Strategic Growth Fund

Type: Sicav.

Aim: Growth by investing in a growth style biased portfolio of US

companies.

Minimum investment: $5,000.

Place of registration: Luxemburg.

Investment split: Information technology 45 per cent, healthcare 19 per

cent, consumer discretionary 14 per cent, industrials 8 per cent,

financials 7 per cent, consumer staples 5 per cent, telecommunication

services 1 per cent, cash 1 per cent.

Charges: Initial 5 per cent, annual 1.25 per cent.

Commission: Initial 3 per cent.

Tel: 0800 269843.

 

David Flowers, Director, Ronald Blue & Co

Michael Both, Partner, Michael Philips,

Keith French, Managing director, French & Associates

 

Suitability to the market 4.7

Investment strategy 6.0

Past performance 6.0

Company&#39s reputation 8.0

Charges 4.7

Commission 5.0

Product literature 6.3

 

 

Chase Fleming Asset Management&#39s FF-US strategic growth fund is a

Luxemburg-based Sicav that invests in growth stocks in the US, that are

benchmarked against the Standard & Poor&#39s 500 index.

Examining how the product fits into the market, Flowers says: “It opens up

a new angle by focussing on the more sophisticated and choosy

investor.”

Both says: “It is another we haven&#39t got a clue what is happening but we

know a new launch brings in the money fund. One has become very cynical,

seeing all these supposedly new funds which are in reality just a way of

pushing a fund while avoiding the embarrassing question of past

performance.”

French says: “This style of investing is a new concept in Europe although

common place in the US. The fund compliments Chase Fleming Asset

Management&#39s existing fund choice and combines the expertise and experience

of Chase Manhattan and Fleming for the first time.”

Considering the type of client that the fund would be suitable for, French

says: “This is for the sophisticated investor forming a small part of their

portfolio. It is an ideal venue for hedging and for those looking for long

term growth through exposure to the US stock markets.”

Flowers says: “It is suitable for larger portfolios where diversification

is not achieved through a fund of funds or a general unit trust.”

Moving onto the kind of marketing opportunities the fund is likely to

provide, the panel agree that they will be limited. Both says: “Very few

because the market is hardly short of US sector funds.” Flowers says:

“Marketing opportunities are limited. the style story is well-known and is

better exploited by the fund of funds promoters.”

French says: “Marketing opportunities will be limited due to the fact that

this will only appeal to the sophisticated and those already with

substantial portfolios. It is an excellent addition to the investment

armoury of any serious stock market investor.”

Turning to the main useful features and strong points of the product,

Flowers says: “It provides access to a US based fund manager for a US fund.

And there is the choice of style investing, should that be desired.”

Both could not find any, but French says: “The long-standing style

investment experience of Chase Fleming, diversification and the spread

across many sectors, and the ability for investors to diversify their

portfolio. It also allows investors to invest in the extreme

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