Johnson Fry is the latest provider to introduce a global unit trust to the UK investment market. It is designed to provide exposure to international markets and to reap the potentially high returns.
The global growth unit trust is aimed at investors who want to diversify their equity portfolios.
The trust aims to benefit from the growth in emerging markets while not having direct exposure to them. It intends to achieve this through a safety-first approach. The strategy is to invest in companies which are international market leaders. Through these companies' diversified global interests, exposure is gained to emerging markets without the risk associated with direct investment.
Johnson Fry will apply its tried and tested stock-selection formula, which has proved successful for its UK Slater growth fund, one of the market leaders in its sector. According to Micropal figures, as at November 6, the fund is ranked first over three years based on an offer-to-bid basis with net income reinvested.
Because of its investment strategy, the new trust is unlikely to achieve the high returns of direct investment in emerging markets. But, conversely, it will not suffer so greatly if these markets fall.