Friends Ivory & Sime (FIS) has launched the ISIS Progressive Growth Fund, the fourth new fund u...
Friends Ivory & Sime (FIS) has launched the ISIS Progressive Growth Fund, the fourth new fund under its retail brand ISIS.
The fund aims to be top quartile over rolling three year periods, giving long term capital growth and investing primarily in zero dividend preference shares.
The fund targets zeros with strong positive asset covers and negative hurdle rates. Zeros with a minimal exposure to other trusts may be held but will be kept to a minimum. The target portfolio at launch aims to deliver a gross redemption yield of 7.5%.
The fund is jointly managed by Peter Hewitt and Julie Dent who together have 35 years investment management experience.
Hewitt commented: "We will be investing in high quality blue-chip zeros that offer realistic and sustainable returns. We will not target split capital trusts that invest in other trusts or rely on gearing to sustain high zero returns, preferring to target zeros backed by a directly invested equity portfolio."
The mangers pointed out a handful of zeros they favour which are the Dresdner RCM Income Growth, with asset cover of 1.23 and a hurdle rate of -4.3, the Fleming Worldwide Income, with asset cover of 1.29 and a hurdle rate of -7 and also the Henderson High Income with asset cover of 1.71 and a hurdle rate of -12.4.
Minimum investment in the ISIS Progressive Growth Fund is £1000 and lump sum top ups of £500, or savings of £50 a month. It is available as an Isa and for Pep/Isa transfers. The initial charge is 4.75% with an annual charge of 1%. Initial commission of 3% is payable to IFAs, 0.5% renewal.
Further information is available on 08457 992299
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