Exeter Investment Group is changing the names of two of its unit trusts to provide investors with a ...
Exeter Investment Group is changing the names of two of its unit trusts to provide investors with a clearer understanding of the funds' remits.
The changes, which come into effect from 1 September, mean Exeter Warrant & Global Opportunities will be called Exeter Global Opportunities.
Richard Scott, manager of the fund, said since the portfolio's investment objective was changed in May 1997, warrants have played a relatively small part in its performance.
Until then warrants made up the majority of the portfolio but, in light of the poor performance of this sector of the market, Scott decided to make the paper a smaller component of the fund.
Over the three years to 9 August the fund is ranked one out of 122 on an offer to bid basis in the Global Growth sector. During the period it rose by 115.4% compared with an average rise in the sector of 38.2%.
Warrants make up around 10% of the portfolio with the remaining 90% invested in shares of investment trusts.
Although the word 'warrants' is being dropped from the fund's name it will still be classified as warrants rather than a securities fund, which can not invest more than 55% of its assets in warrants. Scott said: "We believe the unit trust's current name gives an undue prominence to the incorporation of warrants in the portfolio. With the number of investment trust warrants continuing to decline, it is likely that warrants will remain a relatively minor part of the portfolio."
He added the most important characteristic of any investment chosen for the fund is that it must represent an attractive opportunity in a portfolio which, drawn together, provides diversified exposure to global financial markets.
Exeter has also decided to rename its Fund of Investment Trusts unit trust which is managed by Charles Rawson.
This is to be called Exeter Managed Growth, to focus attention on the investment objective rather than being a description of the shares making up the portfolio. Rawson stressed the decision was not designed to precede a change in the composition of the portfolio. He said the name change was influenced by the change in the fund's unit trust sector.
Following the abolition of the Investment Trust Units sector, Exeter conducted an extensive survey of unitholders and intermediaries, which resulted in the fund joining the Active Managed sector.
Rawson said: "The fund's new name allows investors to identify it with its new sector, in the same as the current name allowed investors to identify it with the Investment Trust Units sector."
Over the three years to 9 August the fund is ranked one out of 33 on an offer to bid basis in the sector. During the period it rose by 74.8% compared with an average rise in the sector of 34.8%.
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