Two UK equity funds to be managed by Andrew Chapman
Teather & Greenwood Investment Management (TGIM) is to launch its first two retail funds, under an Oeic umbrella, on 1 October.
The portfolios on offer are the TGIM UK Equity Growth and TGIM UK Equity Income funds. Both will be managed by Andrew Chapman, who has experience in UK equities through managing the British Aerospace Pension Fund.
The two portfolios will hold around 50, predominantly UK stocks. The objective of UK Equity Growth is long-term outperformance of the FTSE All-Share Index, while the objective of the TGIM Equity Income Fund is to achieve an income return in excess of the yield on the FTSE All-Share with an element of capital growth.
Nicholas Hely-Hutchinson, deputy managing director at TGIM, said the funds will be run on a bottom-up, stock selection basis rather than being sector driven.
He said the funds are not closet trackers, both will be run actively and neither will be taking big sector bets.
'Neither of the funds is going to be speculative. They will look to outperform over the long-term in a risk-averse manner. The funds will mostly concentrate on large caps but there may be some smaller companies within them because of our expertise in Aim.
Chapman said: 'The advantage of starting the funds from scratch is that we are not saddled with underperforming stocks in the portfolio. From day one we can start with the stocks we want.
'Discretionary equity portfolio management is our core business but generally speaking, investment sums of more than £100,000 are required to achieve the necessary portfolio diversification from the point of view of spread and hence risk.
Launching these funds will provide investors with smaller sums to invest across TGIM's investment expertise.'
Hely-Hutchinson said the group had been thinking about launching these retail funds for a number of months, and with markets some 30% off their high, it felt that now was the opportune time to bring the products out.
He added: 'Now is a good opportunity to get into good long-term growth stocks at reasonable levels. Often funds like these are launched in euphoric conditions. This is not the case in this situation.'
Other fund launches are on the cards and TGIM intends to add an ethical and an Aim fund to its range, either by the end of the year or at the start of 2002.
Hely-Hutchinson said: 'TGIM has made good progress in the first year of our three year plan to redevelop the business into a modern investment management operation.
'Core to this has been to build on the already significant business and well-regarded team by selectively recruiting highly experienced discretionary investment managers.'
The minimum lump sum investment in both funds will be £500.
All funds have an initial charge of 5% and an annual charge of 1.5%. Commission is 3% initial.
An ambitious objective
'Something completely new'
'Illusion of control'
Reasons to be cheerful
Total investment reaches £9m