James Brearley & Sons is targeting blue chip stocks with its premium growth trust.
Set up as a unit trust, the fund is aimed at experienced medium-risk investors who want to invest in the UK, are looking for growth and have at least £1,000 of money to invest.
Premium growth will target a portfolio of at least 40 blue-chip stocks that cover a wide range of sectors. All will be listed on the FTSE allshare index and the fund itself will seek to replicate the sector weighting of the index itself, but will not track the index otherwise. The sectors chosen will include resources, financials, cyclical services, consumer goods and basic industries. Some of these will include companies such as BP, Glaxo SmithKline, Shell, Vodaphone, Barclays, British Telecom and Lloyds TSB.
The FTSE allshare index went from 2,328.39 points on October 15, 1998 to 2,460.99 points on October 12, 2001.
The introduction of the premium growth fund will bring the number of James Brearley funds to a total of two, the other being the City Financial James Brearley high income trust.
The premium growth trust will be managed by David Hannis, who is a director at James Brearley and who has been with the company since 1986. Hannis has also worked on the management team for the high income trust, where he was a member of the investment committee that made all the major decisions.
The James Brearley fund is similar to the UK growth fund from M&G, which also invests in blue chip companies in the UK. However, the M&G unit trust only invests in companies in the FTSE 100 index.
The James Brearley high income trust itself is ranked 23 out of 38 funds, based on £1,000 invested on a bid-to-bid basis with gross income reinvested over three years to October 15, 2001.