Investec Fund Managers is filling a gap in its Oeic range with the introduction of the Investec American fund.
The fund will be managed on Investecs behalf by Thornburg Asset Management, a US investment management company. This arrangement is similar to Investecs outsourcing of its European funds to Albert Morillos team at BlackRock.
The Investec American fund will mirror the Thornburg value fund and will be managed by the same fund manager, Bill Fries. Fries joined Thornburg is 1995 from Texas-based USAA Investment Management Company, where he spent 21 years.
The Investec fund will hold between 35 and 45 US stocks. Around 40 per cent of the portfolio will be invested in well established US stocks that are currently undervalued. Another 40 per cent will go into companies with steady earnings which are also undervalued relative to their historical norms. the rest of the portfolio will consists of emerging companies with good growth prospects that are trying to become market leaders.
IFAs believe outsourcing the management of the fund to Thornburg is a good idea because it is US-based and point out that Investecs similar agreement with BlackRock has worked well. However, they feel that US stocks are still too expensive and are recommending US funds as only a small part of their clients portfolios.
According to Standard & Poors, the Investec international equity fund is ranked 26 out of 128 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to August 23, 2002.