View more on these topics

Small is good for Isis

Isis, the new subsidiary from Friends Ivory & Sime, is focussing on the smaller end of the UK market with its new fund.

The UK smaller markets fund is an open-ended investment company aimed at the more sophisticated and experienced investor seeking growth. Nicholas Malins-Smith will manage the product in London.

The majority of the stocks the fund will pick will be in the UK smaller companies sector, although it will also include a small number of companies picked just before their initial public offerings. All of the companies will be chosen for their potential to deliver growth.

Initially the fund will contain around 80 stocks, although this could expand to 100 in the future. These stocks will be chosen from a range of 12 sectors, electronics, health, pharmaceuticals, leisure, media, support services, telecoms, information hardware, software, other financial, transport and general retail. Some of the companies included will be Geest, Enterprise Inns, Vosper, Tenon, Sportsworld Media and Nord Anglia.

Taking a look at some performance data from the London Stock Exchange on some of these companies, Nord Anglia’s share price has risen from 116p on August 28, 2000 to 291.5p on August 28, 2001 and Geest has gone from 455p to 698.5p over the same period. However, Sportsworld Media has fallen from 574p to 357p.

Malins-Smith joined Friends Ivory & Sime in 1994 and currently manages the company’s UK smaller companies investment trust. Before joining Friends Ivory & Sime he was a pension fund manager for Henderson.

The UK smaller markets fund should appeal to the more experienced investor who is looking for a high-risk investment. Its success will depend on Malins-Smith’s ability to cherry pick the best stocks in a market where smaller companies are more likely to go bust.

According to Standard & Poor’s the Friends Ivory & Sime UK smaller companies investment trust is ranked 17 out of 27 funds based on £1,000 invested on a mid-to-mid basis with net income reinvested over five years to August 28, 2001.

Recommended

PIA revokes suspension of Complete Financial Services

The PIA has revoked its suspension of Croydon-based IFA, Complete Financial Services, after it agreed to comply with an Ombudsman award made against it last year. The IFA was suspended on September 10.

Relax polarisation to weed out multi-tied agents, says Pima chief

Polarisation must be relaxed to weed out IFAs who are really acting as multi-tied agents, says the new director general of the Pep & Isa Managers&#39 Association. In his first week as head of the trade body, Tony Vine-Lott has not shied away from controversy by slamming IFAs for the lack of transparency about their […]

Troubled times show the true worth of advice

At times like these, it may be brought home to IFAs just what they are for. Unit trust sales are at a low and many fund values have plummeted with the markets. Split-cap investment trusts are looking vulnerable to the banks calling in their loans. Many stockmarket-linked “guaranteed” bonds are set to invoke all manner […]

Friends Provident adds with-profits to bond

Friends Provident has introduced a unitised with-profits fund that is available to investors through its investment portfolio bond. The fund is aimed at cautious investors who are not ready to climb the stockmarket ladder and who are looking for a home for their cash at a time when building society accounts do not pay much […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment