Friends Ivory & Sime
ISIS AiM Growth Fund
Aim: Growth by investing in UK companies listed on the alternative
investment market and larger companies listed on the TechMARK
Minimum investment: Lump sum £1,000, monthly £50.
Investment split: 80 per cent AiM, 20 per cent TechMARK index.
Isa link: Yes.
Pep transfers: Yes.
Charges: Initial 4.75 per cent, annual 1.5 per cent.
Commission: Initial 3 per cent, renewal 0.5 per cent.
Tel: 08457 992299.
Nick Rogers, IFA, Lauren Charles Financial Management.
Douglas Croft, Partner, Andrews Gwynne &
Scott Clayson, Principal, Professional Financial Services.
Bob Vaughan, Partner, Ashley Vaughan Partnership.
Suitability to market 5.5
Investment strategy 6.5
Past performance 6.4
Company's reputation 7.0
Product literature 6.3
Friends Ivory & Sime has introduced its ISIS Aim growth
fund, an Oeic which allows investors to invest in companies listed on
the alternative investment market and the TeckMARK index.
Looking at how the fund fits into the market Vaughan says:
"Although this fund could be described as just another
high tech or dot com fund it is a new launch without the baggage
associated with existing funds and previous poor stock selections.
This new fund can start clean and hopefully find some sensibly
priced investment opportunities. By investing via a fund the risk is
spread amongst a number of companies rather than individual
Croft says: "The Aim fund is unusual and usefully extends
the range of funds available. The dynamic and zero dividend
preference share funds represent additions to a growing sector. The
smaller companies fund sector is already
Clayson says: "A quality higher risk fund. A good
alternative to technology funds." Rogers says:
"Innovative and interesting but could be very poor timing
due to recent events and impact on consumer
Identifying the type of client the fund is suitable for Croft says:
"These are not for widows and orphans. Clients will need
an appetite for risk and funds such as the Aim fund will represent
only a small part of the total portfolio."
Rogers thinks that it will appeal to the more sophisticated and
financially aware investor and those with a very optimistic or
Vaughan says: "The literature suggests younger investors
with spare capital investing for the long term would be most suited to
investment in the AiM fund. I would add to this anyone wishing to take
a punt on new ventures or developing technology but who are also
aware, from more recent performance, how volatile this type of
investment can be."
On the other hand Clayson believes wealthier clients with a long-term
investment horizon would find this fund attractive. He says:
"I would not recommend more than 5 per cent of a portfolio
in this fund because of its high-risk profile."
Analysing the marketing opportunities the fund will provide Croft says:
"The AiM fund in particular adds a string to the
Clayson thinks the fund will provide an opportunity for investors who
are frightened of the high tech stocks. Whereas Rogers believes the
opportunities are limited due to the launch timing,
"Its ok within a balanced portfolio of an
aggressively minded investor," he says.
Vaughan says: "Having witnessed the volatility of the high
tech and dot com funds it requires a brave investor with a long term
or cavalier outlook to commit to funds at the present time. I feel
regular premiums would perhaps be more popular for younger
investors and small single premiums for wealthier older clients
both via Isas."