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The boutique with the young approach

Investment boutique Taylor Young Investment Management has broadened the risk profiles within its fund range with the introduction of CF Taylor Young International Equity and CF Taylor Young Opportunistic.

The opportunistic fund is a more aggressive ‘best ideas’ fund that aims to outperform the FTSE All Share index. It comprises 25-30 UK growth companies across the market cap spectrum, including those trading on Aim.

Manager Nick Rundle joined Taylor Young in 2004, having previously worked at Gerrard, Morley Fund Management and brokers such as BZW. He also runs Taylor Young’s equity income and growth funds.

The international equity Fund is benchmarked against a composite index comprising two thirds FTSE All Share and one third FTSE World ex UK. It will hold 40 stocks, investing 60 per cent of the portfolio in the UK with the remaining 40 per cent invested globally, but mainly in Europe and the US. This fund will be managed by the company’s chief executive officer and chief investment officer Peter Thomson. Thomson joined Taylor Young three years ago following 18 years at Gerrard, where he was head of the global strategies division.

The new funds are an extension of segregated mandates the managers have been running at Taylor Young for the last few years, although they also ran similar portfolios at Gerrard. Both Rundle and Thomson will run their funds using Taylor Young’s thematic basis. This process uses top-down and bottom-up approaches to identify themes that the managers believe will drive growth over the next three to five years.

Of a universe of 30 themes, only seven or eight will be played out in the portfolios. Examples of current themes include demographics and social change, with an ageing population the driver for pharmaceuticals and wealth creation in China leading to demand for luxury brands such as Christian Dior and Tiffany.

Taylor Young says the thematic process is style neutral, which means it has the flexibility to fit with market conditions. However, there is a risk that the themes may not always pan out as the managers anticipate and some opportunities could be missed if they do not fall under one of the selected themes.

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