Royal & Sun Alliance is to launch the UK Prime Fund on the 30 April 2001 and is planning to roll out...
Royal & Sun Alliance is to launch the UK Prime Fund on the 30 April 2001 and is planning to roll out a series of actively managed funds with concentrated portfolios, writes Fiona Henderson.
The proposed range will include the International Prime Fund, the European Prime Fund and the North American Prime Fund.
The exact details of the focused fund range is not yet finalised but should be in place by the Autumn of this year, said Robert Matthews, managing director institutional and retail funds at Royal & SunAlliance.
The first in the range, UK Prime Fund, is to be managed by Mike Felton who is the lead manager of the RSA UK Equity fund and director of pan-European equities.
There are three share classes on the fund, the first for those investing up to £200,000. Share class two is for those who subscribe between £200,000 to £10m and share class three is for investments above £10m.
The initial charge for share class one is 5%, although a discount of 2% will be offered until 18 May 2001, reducing the charge to 3%.
There is an annual management charge of 1.5%. Commission is available to IFAs at 3% and renewal commission is 0.5%. For investments in share class two and three the charges will be significantly reduced, Matthews said.
The fund will be very concentrated with 30-40 stocks, Matthews said, and all will be large and mid cap equities.
Felton will be supported by a team of analysts and the positioning of the fund will be based on a list of all the top ideas from the UK team.
Matthews said: "The fund will not be inhibited by any particular benchmark and will not be choosing stocks simply because they appear on an index."
Bambos Hambi, at Friends Ivory & Sime, said: "In order to be successful, investment houses need to introduce high risk profile funds that will push performance figures up and the fund to top decile. We have an enormous amount of respect for Felton and as a result will be looking closely at the fund."
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