View more on these topics

Schroders debuts its first fund of funds

Schroders is taking its first steps into the fund of funds market with the arrival of its private equity fund of funds.

Structured as an investment trust and listed on the Dublin Stock Exchange, the fund is aimed two types of potential clients. The first are institutional investors and the second are high-net-worth investors. Both must be looking for a medium-risk product with a term of between five and 10 years and must have a minimum of £125,000 to invest.

The fund will invest in a minimum of 20 funds, 12 of which have already been chosen. The funds will cover a wide geographical area, with between 40 to 60 per cent in Europe, 40 to 60 per cent in the US and 10 per cent in other areas like Japan. These funds will also cover a broad range of sectors, such as venture capital, management buy-outs and development capital.

Some of the 12 funds chosen so far include Austin ventures VIII, which is a technology venture capital trust based in the US, index ventures II, which is a European information technology fund and the Japan venture fund III, which is a Japanese development capital fund. Schroders has pledged that no more than 20 per cent of the fund of funds will be in funds from the same management group.

A 12-strong group made up of investment advisers from both Schroders and Schroder Ventures will manage the fund, headed by Solomon Owayda. Owayda joined Schroder Ventures in 1997 as an investment specialist. Before that he spent nine years at the California state teachers return system, which is a US pension fund worth £7bn.

Of the 65 Schroders funds on the market at the moment, 11 are first quartile, 14 are second quartile, 20 are third quartile and 17 are fourth quartile, based on £1,000 invested on a bid-to-bid basis with gross income reinvested over one year to September 17, 2001.

Recommended

LibDems want product firms to fund &#39free&#39 advice by IFAs

The Government and product providers should shoulder the cost of independent financial advice, replacing commission as the primary way of remunerating advisers, say the Liberal Democrats The idea, proposed by LibDem trade and industry spokesman Vincent Cable, would allow consumers to be confident the advice they get is truly independent and would not involve commission […]

Schroders – Schroder Private Equity Fund of Funds

Wednesday, 26 September 2001.Type: Fund of funds.Aim: Growth by investing in a portfolio of private equity funds.Minimum investment: Euro 125,000.Place of registration: Dublin.Investment split: 100 per cent in private equity funds.Isa link: No.Charges: Annual 1.25 per cent class A shares, 1 per cent class B shares, 0.75 per cent class C shares.Commission: Subject to negotiation.Tel: […]

Aberdeen Murray Johnston Private Equity – Aberdeen Growth Opportunities VCT

Tuesday, 25 September 2001.Aim: Growth by investing in smaller unquoted companies in the UK.Minimum investment: £3,000.Opening-closing date: September 27, 2001-April 5, 2002.Charges: Annual 2 per cent for the first year, 2.5 per cent thereafter.Commission: Initial 3 per cent, renewal 0.5 per cent for investments £500,000 or above.Tel: 0845 3002830.

Independent view

“Oh, so you are an IFA – what do you actually do all day?”“You shouldn&#39t listen to my secretary&#39s gossip, those three-hour lunches are planning meetings, you know.” I had started the reflex defence move before realising that, for once, the enquirer was not having a go at me. She was from outside our industry […]

The curse of long-term cash

Trevor Greetham, Head of Multi Asset at Royal London Asset Management, reveals why clients should be seriously concerned when short-term holdings of cash turn into a long-term investment. There is nothing wrong with holding wealth in the form of cash on a short-term basis. For many people capital stability is important and access to ready cash […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment