TILNEY INVESTMENT MANAGEMENT
AMERICAN GROWTH FUND
Growth by investing in US equities
Minimum investment: Lump sum £500,
100% US equities
Tel: 0808 100 8878
Tilney Investment Management's American growth fund was originally a Dublin-based fund available only through Tilney's discretionary fund management service. It is now based onshore and available to the retail IFA market.
Morgans Independent Advisers director Martin Dilke-Wing thinks it is heartening that Tilney has committed a high degree of marketing support in an attempt to crack the retail market. He adds: “It is to be hoped that the returns justify investors' and marketeers' confidence.”
According to Dilke-Wing the charges and adviser remuneration is standard for this type of fund. He says: “It would appear that the American growth fund, presuming client support, is perceived very much as the Tilney flagship. The suitability of the product depends completely on advisers and their clients buying into the institutional investment story and the investment philosophy. The past performance and apparent stability of the management team are positive indicators that the prospects for fund, relative to its peer group, may be strong.” He also thinks the literature is strong and the fund's track record impressive.”
On the other hand Dilke-Wing is keen to point out the pitfalls of the product. He says: “There is an overall lack of market awareness of Tilney. Looking through the existing funds, it would appear that in terms of the retail collective sector, Tilney is not especially strong. This is the case in respect of the level of funds under management and the returns that these funds have achieved when compared with their respective benchmarks.”
Dilke-Wing goes on to explain that his other areas of concern are that the investment team appears to consist of a star fund manager and his associate. He says: “One assumes that there is a substantial in-house research available but few details are provided in the literature. Finally, it would be better if Tilney made it clear how being based in Liverpool facilitates its management meetings each year - would it not have been easier to have a US-based team?”
Dilke-Wing feels the main competition will come from flagship American funds run by bigger investment houses such as GAM, Prudential and Gartmore. He also highlights Investec as an example where investment management is outsourced to US-based companies.
Summing up Dilk-Wing says: “The fact that Citywire has seen fit to AAA grade this fund which is effectively a new fund to the retail market from a not particularly well-known manager, can only be encouraging. I can envisage discretionary managers and investment IFAs will want to get into this fund while it is small and not well known in an attempt to get in at the bottom.”
Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Good