Type: Oeic fund of funds
Aim: Income and growth by investing in open-ended funds, closed-ended funds and cash
Minimum investment: Lump sum 1,000
Investment split: 100% in open-ended funds, closed-ended funds and cash
Isa link: Yes
Pep transfers: Yes
Charges: Initial 4%, annual 1.65%
Commission: Initial 3%, renewal 0.5%
Tel: 01608 642233
The CF Wise income fund is an Oeic fund of funds that will have a net target yield of 3.8 per cent and will invest in equities, fixed interest, commercial property and cash through a portfolio of 30-40 funds.
Chadney Bulgin partner Bruce Bulgin notes this fund is entering a crowded sector of the market so there will be considerable competition. However, he sees this as a useful product for any adviser or investor seeking an innovative fund of funds which has fewer restrictions than many other funds with similar objectives.
The fact that it holds property makes it unusual, says Bulgin. Overall, Wise Investments track record for delivering attractive investment returns is good.
Assessing the product literature Bulgin says: The product literature is basic but this is not a major consideration. Also, adviser remuneration is acceptable.
Discussing the weaker aspects of the fund Bulgin says: As with all funds of funds there is an element of double charging and its flexibility could be considered to be a weakness as well in that the range of asset classes may be inconsistent with the advisers recommendations and the investors expectations.
He also points out that it is such a small fund and that Wise Investment is a smaller operation, which makes him wonder what support there is. Depending on the size of the investment, an option would be to opt for a range of funds selected by the adviser and utilise asset allocation modelling, says Bulgin.
He concludes that Wise Investment could face competition from other funds of funds such as those on offer from Credit Suisse, Jupiter and New Star.
Suitability to market: Average
Investment strategy: Good
Adviser remuneration: Good