BWD Rensburg's UK Micro-Cap Growth fund is approaching the £20m level at which the group intends to ...
BWD Rensburg's UK Micro-Cap Growth fund is approaching the £20m level at which the group intends to cap the portfolio.
Launched in October 2002, Stuart Sharp's fund invests at the smallest end of the market and BWD feels its opportunities would be hindered by exceeding this £20m limit.
A major reason behind the launch was that, at around £30m, Mark Hall's BWD Aggressive Growth fund had become too large to access the micro-cap area of the market. The new fund was designed to invest in firms under the £100m market cap level. Having more than £20m in funds under management would mean taking significant positions in firms of such a size.
With the fund now at £15m, joint managing director at the group Alex Brotherston said BWD will most likely enforce a cap by introducing various marketing restrictions, such as increasing the initial charge and cutting initial and renewal commission for advisers.
Another option would be to convert the trust into a limited issue fund, now allowed under extended regulations issued by the FSA in December, but BWD said it would prefer to see portfolios of this type in operation before going down that route.
Over three months to 20 January 2003, BWD UK Micro-Cap Growth returned 34.6% bid to bid, compared to a UK Small Caps sector average of 3%.
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