Framlington is proposing to change the investment remit of its US Smaller Companies unit trust, writ...
Framlington is proposing to change the investment remit of its US Smaller Companies unit trust, writes James Thorneley.
In a letter being sent to unitholders this week the group proposes to change the benchmark of the fund from the Russell 2000 to the Nasdaq. The fund will also be renamed Framlington Nasdaq unit trust.
Craig Walton, marketing director at Framlington, said the group had been looking to alter the unit trust since last year as the Russell 2000 had become a less appropriate benchmark.
He said: "Already two-thirds of the assets are invested in Nasdaq listed stocks."
One reason why the change has taken so long to be announced is that the group has had to negotiate with Nasdaq to be able to use the index name in the fund's title.
If approved by unitholders the necessary changes to the portfolio could be made in minutes, according to Neil Birrell, head of specialist funds at Framlington.
He said: "It is not a case that the stocks, which will be sold as result of the changes are illiquid. It is more a case of market timing and getting the best for the stocks."
Stephen Kelly, head of US equities at Framlington, will continue to run the fund. He took over the fund's management in September last year when the previous manager, Susan O'Brien, left Framlington.
All-day event on 24 April
Consequences could be more severe than in stress tests
AFH has six segregated mandate funds
Variable operating expenses