Type: Oeic fund of funds
Aim: Growth by investing in equities and equity-related investments through a portfolio of investment funds
Minimum investment: Lump sum £1,000, monthly £100
Investment split: 50% in UK equities, 50% in overseas equities
Isa link: Yes
Pep transfers: Yes
Charges: Initial 5%, annual 1.5%
Commission: Initial 3%, renewal 0.5%
Tel: 020 7360 3550
This fund of funds aims for growth by investing globally in equities and equity-related investments through a portfolio of investment funds.
Introducing the fund Charter Devon Law principal Michael Posner says: “Thames River Capital has just launched its new range of multi-manager funds, run by the established successful multi-manager pairing of Robert Burdett and Gary Potter and their team, who recently joined Thames River from Credit Suisse.
“The offering consists of five core funds, of which the equity managed fund forms one. It falls into the IMA active managed fund sector, with a split of 50 per cent in UK equity and the remaining half in international funds,” he says.
Posner observes that minimum lump sum investments start from £1,000, with regular investments starting at £100. “The funds can be included in an Isa and will accept Pep transfers, as well as direct investments. The charges are on the higher side, but acceptable, and there is initial commission payable of 3 per cent, with 0.5 per cent renewal.”
In Posner’s view, the literature accompanying the fund is clear and understandable, with a refreshing lack of impenetrable jargon. “The structure is set up as an Oeic with five sub-funds, and with the equity fund being created for capital growth, with the stated intention of blending the right combination of managers and styles so as to reproduce the same first quartile, award winning performance, as was achieved at Credit Suisse,” he says.
Posner says multi-manager funds have so far attracted approximately £33bn of investment and, of the top quartile performers, 69.5 per cent of them outperformed their sector in the year to date. “This undoubtedly a sector of growing importance, and a new offering by an experienced team must be of interest to advisers,” he says.
Looking at the potential downsides of this fund Posner says: “There is almost nothing that one can take issue with. The investment team is well established and are aware of the identity of their fund managers from long experience of dealing with them. Nevertheless, this is a new fund and with many established funds in this sector with an actual track record of performance.”
Posner thinks it requires faith in Potter and Burdett’s expertise to recreate an achievement with the brand new funds, which some advisers may want to see achieved before choosing this fund over the competition. “Nevertheless, they have done it in the past, and with no baggage to bring with them, there is an equally strong argument for using them,” he says.
Assessing the competition, Posner notes there are a number of funds in the Active Managed sector, with excellent performance records such as Investec, F&C and Invesco to name but three. “However, it will almost certainly depend on the client’s needs as to what is most appropriate for them and differing objectives will require a different choice of funds,” he says.
Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Average