Solus US Select Opportunities fund is to launch on 1 October. As first reported in Investment Wee...
Solus US Select Opportunities fund is to launch on 1 October.
As first reported in Investment Week, the Oeic sub-fund will be run by value specialist Chris Bertelson of US group PXP International.
It will operate on an unconstrained basis to maximise the potential universe available to Bertelson and will focus on mid-cap stocks.
The fund will aim to have 60% invested in mid-caps, with 20% in small caps and 20% in large caps, although it will not seek to invest in companies that operate on a multinational basis. The portfolio is to contain 55-65 stocks.
Explaining the decision to give Bertelson an unconstrained mandate, Solus investment products group manager, Alaric Gordon, said: 'The US market is very efficient and if you put restraints on fund managers you remove opportunities to add value.'
Solus is looking at possible benchmarks for the fund but Bertelson has gone on record as saying he believes the market will not see the kind of high returns seen throughout the 1990s in future. In the current investment climate, returns of 8%-10% per year should be considered above average, he said.
The charges will be the same as existing sub-funds. The initial fee on the Solus range is 3.5% and the annual management fee for overseas funds is 1.5%.
Intermediary commission is 3% and renewal is negotiable. Minimum subscription will be £500, or £40 monthly subscription. There will be no initial charge for the first three weeks.
Bertelson already runs the Aberdeen American Opportunities unit trust, which he has managed since 1998.
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