By Leo Bland Edinburgh Fund Managers is launching a fund of funds product next week investing in gl...
By Leo Bland
Edinburgh Fund Managers is launching a fund of funds product next week investing in global mutual funds.
The product, called Edinburgh Global Growth Portfolio, will invest in a mix of global themed and geographic funds for exposure to investment themes such as technological innovation, corporate consolidation and demographic change.
There are no restrictions on geographic areas or economic sectors and initial asset allocation for the fund will be around 50% in the US, 20% in Europe, 12% in the UK and 9% in Japan, with the remaining 9% in the Pacific and emerging markets.
The largest sector holdings will be 20% in information technology, 14% in financials, 10% in health and 21% in consumer industries, including media, leisure and retailing.
The product will look to invest in around 20 funds. Thematic funds that Edinburgh expects to offer through the initial portfolio include Investec GF Wired Index, SocGen Technology, BGI Multinational, Framlington Health and Sarasin Equisar.
Other geographic funds that are set to have weightings in the initial portfolio will include Threadneedle American Growth, Invesco European Growth and Baillie Gifford Japanese.
Framlington Health is ranked first out of 54 funds in the Specialist sector over three months and first out of 38 funds over one year to 25 October, while SocGen Technology is ranked seven out of 38 over one year.
Edinburgh Global Growth Portfolio will be managed by Edinburgh Fund Managers' private client team, which is headed by Harry Morgan.
The team, which also includes Ken Wilson, senior portfolio manager, and Craig Heron, senior research analyst, runs the Edinburgh Managed Growth Portfolio fund.
The fund, which was launched in July 1997 and is around £100m in size, is ranked 13 out of 76 funds in the Balanced Managed sector on offer to bid returns of 14.7% over the year to 25 October.
Edinburgh Managed Growth Portfolio is ranked 18 out of 59 funds over the three years to 25 October on growth of 32% on an offer to bid basis.
Morgan and his team will look to carry out detailed analysis and assessment of unit trust and Oeic groups and their funds, to identify the best growth opportunities. Morgan, who is managing director, private clients at Edinburgh, said: "This fund is ideally suited for those investors who want to hold a globally diversified portfolio but are unsure about which funds to choose."
The fund is available through Edinburgh's Classic Portfolio Service or as a stand-alone fund of funds. It is also available as an Isa. The minimum lump sum investment is £2,000 and the minimum additional lump sum investment is £500. The minimum monthly investment is £100 for unit trusts and £150 for Isas.
The fund of funds will have an initial charge of 3.25% and an annual management charge of 1.5%. IFA commission will be 3% initial and 0.75% renewal.
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