Discussing the main useful features and strong points of the Oeic
Clayson points out the high growth potential and diversification,
which includes healthcare, mining and software from new
companies. Rogers highlights the innovation and clarity of vision.
Vaughan says: "The useful features are the ability to invest
from £1,000 as a single premium and from £50 a month for regular
premiums. The fund is also available via Isas. The strong points are
the two fund managers Bill Brown and Robert Mitchell who have a
wealth of experience and a good track record."
Croft says: "The withdrawal facility provides easy access to
total return, at this stage only a minor benefit but with falling yields
some clients will need to resort to capital accruals."
Discussing the investment strategy of the Oeic Vaughan says:
"Despite the falls in technology stocks and risks
associated with smaller companies there is still a belief that the
future and with it, true growth potential lies, with the type of
companies listed on the London stock exchanges Aim market. A
good fund manager (or two) could exploit this opportunity in the
Clayson says: "High risk with high-growth potential. If you
can stand the risk of some holdings disappearing, then investing in
well researched new ventures provides high-profit potential for the
Croft says: "There is not much to pick and choose
between this and the competition. We all know that much will depend
not on the stated objective but how the manager interprets and
Rogers says: "Recent events may prove their strategy to
be misplaced. The market is so unpredictable that even good
opportunities may be passed up, which is the basis of the fund
Turning to the funds disadvantages Croft says: "Short of a
performance record there is little here to hang a hat on. Even the lead
managers are only named in faint and small print on front of the fact
sheet and the potted biographies dont add
Drawbacks Rogers identifies include slightly high charges both up
front and ongoing, there is no explanation in the literature as to why
and this could be confusing to some.
Vaughan says: "Due to the higher risk nature of the
investments the attraction is limited to the more adventurous
investors. There is scope to invest in larger companies and those
listed on the TechMARK index and hopefully this will not lead to just
another high tech investment."
Clayson says: "There is a high risk that some or all of the
underlying investment could lose value dramatically. Volatility will be
an inevitable problem."
The panel speak favourably of Friends Ivory &
Simes reputation Clayson describes it as "top
drawer". Rogers thinks its good within its
Croft says: "Friends has a reputation for ethical
investment. Ivory & Simes is a bit more patchy,
they were let down by poor administration but that is not
Vaughan says: "Friends Provident and Ivory &
Sime both have good past reputations. Friends Provident is
experiencing many problems at present and it is hoped that these do
not deter from the formation of the new ISIS brand. It is perhaps
appropriate that the Friends has been dropped."
Looking at Friends Ivory & Simes investment
past performance the panel are in agreement that it is good. Croft
says: "Very fair but it is not clear how much of this is due to
fund managers who have moved on."
Discussing what will be the main competition the panel mentions
funds from Artemis, Threadneedle, Investec, Aberdeen, Credit
Suisse, BWD, Liontrust and Exeter.
Assessing whether the charges are fair and reasonable most of the
panel agree they are competitive and in line with similar funds.
Rogers thinks they are too high.