The iimia ACD Services growth and income Fund is a fund of funds which can invest in open-ended and closed ended funds.
Charter Devon Law principal Michael Posner thinks this is worthy of inclusion in most advisers armoury. He believes the mix of open-ended and closed-ended funds should allow greater scope to perform.
Posner says: “iimia was formed in 2002, bringing together the talents of several fund managers, one of whom is Nick Greenwood. He was in charge of the successful Christows accelerated fund. In 2004, iimia incorporated what was left of the rather troubled Exeter Investment Group and the new entity is trading as iimia ACD.”
In Posners view, it is difficult to judge the iimia fund in terms of risk or performance because new funds have a limited trading history. However, he feels the managers ability to outperform the markets may be of interest where the clients risk/reward profile is more adventurous.
Posner says: “While he was at Christows, Greenwoods accelerated fund showed 41 per cent growth. Since then, running a fund with same title at iimia, he has achieved growth of 61.4 per cent.”
When asked what he dislikes about the fund Posner says: “There is not a great deal which one can object to in this offering, as most of the objections to this style of investment vehicle rotate around the clients perception of risk. There are a couple of points that should be noted, however. Clients funds are not ring-fenced and in the event of iimia ACD Services not being able to meet its obligations, investors capital can be at risk. Also, charges may be treated as a charge against capital.”
In Posners view, the funds annual management charge is relatively low and the performance fee is fair and sensible. He explains: “It is an undoubted benefit to an investor to know that the fund manager will only gain inflated rewards after he has satisfied the growth aspirations of those who are giving him the money in the first place. The performance fee at 15 per cent of the outperformance of the benchmark, is clearly set out in the key features.”
He concludes that the overall presentation of the information is well set out in the literature.
Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Average