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Solus ship comes sailing in

BROWN SHIPLEY

SOLUS UK FLAGSHIP FUND

Type:
Oeic

Aim:
Growth and income by investing in UK equities

Minimum investment:
Lump sum £500,
monthly £40

Investment split:
27% financials, 20% resources, 19% cyclical services,
8% non-cyclical services, 8% basic industries,
7% consumer goods, 6% general industrials, 5% utilities

Isa link:
Yes

Pep transfers:
Yes

Charges:
Initial 3.5%,
annual 1.25%

Commission:
Initial 3%,
renewal 0.5%

Tel: 0161 214 6868

Brown Shipley&#39s Solus UK Flagship fund was established following the closure of five smaller funds in the company&#39s UK range.

Aptitude Financial Planning principal Roy Rutter says: “By closing down several tiddlers and concentrating on the new fund, Brown Shipley may attract more clients. However, it is still a relatively unknown name. At a time when sentiment seems to be with funds of funds and managed funds I am not sure that Solus is launching the right vehicle.”

In Rutter&#39s view the adviser remuneration is standard while the initial and annual charges are competitive. He points out that the fund also has facilities for Isa and Pep transfers exist.

Casting an eye over the product literature Rutter says: “The literature is very thorough except in the area of saying more about the investment strategy and the pedigree of its management team. The fund manager, Paul Morgan, is not yet well-known, although he appears to be a rising star.”

Looking at the fund&#39s drawbacks, Rutter reiterates his earlier concerns that the timing may be wrong. He adds: “The strength of Solus funds has been in the managed portfolios under Ray Broughton and Alan Stokes, but over longer time periods this has only been average.”

Summing up Rutter says: “I expect Brown Shipley is not targeting the man in the street with this fund. Pension schemes and high-net-worth investors seem to be the target market. However, the fund is in a crowded area. There is a whole raft of similar UK All Companies funds from the likes of Artemis, Investec and Isis. The Solus fund may struggle in the present directionless UK stockmarket.”

BROKER RATINGS:

Suitability to market: Poor
Investment strategy: Average
Charges: Good
Adviser remuneration: Good

Overall 6/10

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