Britannic Asset Management has renamed its International Special Opportunities Fund the Global Growt...
Britannic Asset Management has renamed its International Special Opportunities Fund the Global Growth Fund, to better reflect its investment mandate.
The frAA rated £99.6m fund is ranked 52 out of 120 funds over three years and 64 out of 145 funds over one year, on an offer to bid basis, to 5 July. The fund is managed across all the company's equity desks, and the investment co-ordinator is Andrea McNee.
McNee said: "Once a target weighting for each sector has been set, the emphasis of the fund is very much on stock picking. We use a bottom-up selection process with each desk responsible for contributing its best stock ideas to the fund, according to the target weighting for each region.
"We look to capitalise on growth opportunities as they arise. For example, companies which are restructuring, reducing debt, under new management or taking advantage of a niche sector are particularly attractive."
The unit trust has a flexible strategy and the ability to invest in both large and small global players.
The fund is currently 28.6% invested in Europe, 22.7% in UK and 20.6% in the US. Japan accounts for 13.4% of the portfolio, the Far East is 5.1%, while the cash component is 9.6%.
Stuart Dickson, an investment co-ordinator on the fund said the high position in cash is a result of taking profits following the bounce in Nasdaq. He said the cash position had also risen due to nervousness about some technology plays, for example semi conductors.
The asset allocation is currently sector neutral. It is slightly underweight US, and slightly overweight in Japan and the UK, while being neutral of Europe. The fund is underweight Asia after heavy profit taking.
Dickson said: "Our next move is likely to be reducing the overweight exposure to Japan and putting some money back into Asia."
McNee said: "The fund's performance has benefited from its overweight position in Japan and its underweight stance in telecom stocks. Its bias to good quality growth stocks was also a positive, these rebounded strongly as the markets became more convinced of a US soft landing. The fund will maintain its current stance of broadly sectored neutral positions and a focus on quality growth stocks looking to take a more constructive position when US interest rate concerns abate."
McNee is playing the themes of outperformance in Asian equity markets, and has focused on technology and growth stocks with visible earnings.
Top holdings are San Paolo Torino at 2.4% portfolio exposure, Deutsche Bank at 2.2%, Vodafone AirTouch at 2.1%, Nestle at 2.1%, and Shell Transport at 2.0%. Allianz, Royal Dutch and Fujitsu each account for 1.8% of the portfolio while Alcatel and Ericsson are each 1.7%.
McNee said among the biggest stock bets in the portfolio is Nintendo, whose monopoly in the hand held games market should be strengthened following the release of GameBoy Advanced in the autumn. Another favourite stock is the outsourcing company, Li & Fung of Hong Kong. Li & Fung makes kitchenware, home furnishings, toys and games but outsources the whole process so profitability is very high.
An Isa option is available on the Global Growth Fund. Minimum investment is £500 and minimum top-up is £250. The initial front end charge is 5.25% and the annual management charge is 1.5%. IFAs are offered 3% front end commission and 0.5% renewal commission.
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