View more on these topics

Old Mutual sails offshore

Old Mutual has introduced an offshore fund that aims for capital growth by investing in smaller companies within the UK.

The Old Mutual UK select smaller companies fund will invest in companies valued at less than £1bn. It is expected to contain between 50 and 60 stocks. Individual stocks will not represent more than 5 per cent of the portfolio.

Ashton Bradbury, who currently manages Old Mutual&#39s onshore fund of the same name, will also run this fund. Bradbury joined Old Mutual in September 2000 from Hill Samuel. He also managed the HSBC smaller companies trust between 1996 and 1998.

Bradbury&#39s management style is to combine top-down and bottom up approaches to stockpicking with value and growth investment styles as he sees fit. A top-down approach looks at the bigger picture first, analysing factors such as interest rates and economic growth, before selecting companies that are likely to benefit from what is happening. A bottom-up approach involves putting individual stocks under a microscope in terms of its management team, growth prospects and financial position.

When looking for growth stocks, Bradbury will aim to find companies that have the ability to grow and increase its share price, while value stocks will be companies that look undervalued.

The benefit of investing in smaller companies is that the potential returns are higher than investing in larger companies because they have more scope to grow. However, this is matched by increased investment risk as there is no guarantee that smaller companies will survive if larger competitors try to squeeze them out of the market.

According to Standard & Poor&#39s, the Old Mutual UK select smaller companies fund is ranked 3 out of 74 funds based on £1,000 invested on a bid-to-bid basis over six months to January 14, 2002.

Recommended

Pro bono plan would raise image of advisers

Proposals for IFAs to give free advice in Citizens&#39 Advice Bureaux and a new lower level of generic adviser are set out in the FSA&#39s polarisation paper.The regulator refers to plans to set up a pilot scheme for IFAs to offer pro bono generic advice. Aifa and the CAB have had extensive talks but the […]

The Aussie example

The Government has so far rejected introducing further compulsion into its pension policy. Instead, it has opted for the tactics of encouragement and incentive.There are clearly doubts over whether the current strategy will be successful – stakeholder pensions are not being bought by the target group and the pensions credit will be too complex to […]

Editorial: Put yourself and consumers first

The FSA&#39s spin-doctored announcement on the axing of polarisation has as its heading: “Consumers put first in proposed reform of financial advice”.This is simply not true. A more accurate heading would be “Consumers put last as overwhelming demand for IFAs ignored”.The lunatics have taken over the asylum but most IFAs realised that long ago.The changes […]

Genesis Home Loans 3-year discount

Genesis Home Loans, buy to let discountDiscounted term: 2 yearsDiscount: 1.25%Payable rate: 4.5%Minimum loan: £40,000Maximum loan: £300,000Income multiples: 3.25 + 1, 2.75 x jointArrangement fee: £325Redemption fee: 6 months interest at SVR for 3 yearsConditions: rental income must be 130% SVRIntroducer&#39s fee: refer to packagerTel: 01832 275 044

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com