Rationalisation sees guinness flight uk equity income portfolio become a uk value fund
Investec is to create four funds as part of an Oeic conversion process which will see the Guinness Flight brand disappear from the retail market.
These four new portfolios are being created as the result of a series of fund mergers. The most significant will be the Investec Monthly High Income fund, which is to be created from the combination of the European Bond and the Global High Income Bond trusts.
Three other Oeic funds to emerge from fund mergers are the Investec UK Smaller Companies Trust, the Investec Global Free Enterprise Trust and the Investec Hong Kong & China Trust.
The rationalisation will also see Investec convert its existing Guinness Flight Equity Income Portfolio Trust into the Investec UK Value fund which will move from the UK Equity Income sector into the UK All Companies sector.
Monthly High Income will aim to provide a high income primarily through buying into a balance of investment grade and high yield bonds drawn from the global debt universe. The new fund will not inherit a track record. The portfolio, which will be managed to minimise currency risk, will be run by Michael Markham, who moved to Investec from Invesco where he was AAA-rated by S&P. The exact level of income aimed at is not yet being released by Investec.
Markham, who joined Investec to work with former colleague and Investec's head of fixed income Paul Griffiths, also AAA-rated at Invesco, currently runs the European Bond and Global High Income unit trusts which are to be merged to create the new trust, as well as the Investec Sterling Bond fund
The UK Smaller Companies Trust will be created from the merger of the Guinness Flight UK Emerging Companies and the Guinness Flight UK Smaller Companies trusts. It will be managed by Daniel Hanbury and the track record will be that of the Guinness Flight UK Emerging Companies Trust.
The Investec Global Free Enterprise Trust will be formed through the merger of the Guinness Flight World Markets Portfolio and the Guinness Flight Global Privatisation trusts. It will be managed by Jeremy Podger and retain the track record of the Global Privatisation trust.
Its mandate will be to provide growth through investment in companies around the globe expected to benefit from privatisation, demutualisation and deregulation.
The Hong Kong & China fund will be created through the merger of the Guinness Flight Hong Kong & China and Guinness Flight Asian Smaller Companies trusts. It is to be managed by Edmund Harriss and inherit the track record of the Guinness Flight Hong Kong & China Trust.
The initial charge on the Oeic sub-funds is 4.5%, except for the Sterling Bond fund which has a 3.5% initial fee. Commission on all funds is up to 3% initial. Renewal is 0.5% except for 0.25% on the European and Sterling Bond funds. The annual management charges vary on the funds between 0.5% and 1.5%.
Succeeding co-founder Simon Rogerson
Janus Henderson Global Dividend Index
More than 10 million shares allocated
Long-term strategic holding
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