Collins Stewart Continental European Focus fund will mirror existing guernsey portfolio
Collins Stewart is to launch a concentrated Continental European Oeic fund by the end of March, pending regulatory approval.
The Dublin-based, sterling-denominated product, the Collins Stewart Continental European Equity Focus fund, will be a mirror image of its Guernsey-domiciled Collins Stewart European Equity Focus fund, brought out in April 2002.
Since launch, the Guernsey portfolio is ranked first out of 86 funds in the offshore Europe ex-UK sector. It lost 13.78% to 31 December, offer to bid, while the sector average fell 26.23%.
Like its Guernsey counterpart, the new fund will be managed by Rod Sleath, who joined Collins Stewart in November 2001.
The Guernsey fund currently holds 25 stocks but can hold anything between 18 and 30.
Jerry Devlin, head of UK fund sales at Collins Stewart, said Sleath's style focuses on looking for intrinsic value within companies.
'This does not mean he looks for bombed-out companies on low P/E ratios,' he said. 'Rather, he conducts his own in-depth analysis of a company's accounting records and discounted cash flows.
'The company will meet his criteria if he feels it offers around 50% upside over the next three years. Sleath is not a value investor per se but aims to understand true value.'
The top 10 holdings in the fund, which collectively represent 50% of the portfolio, include Koninklijke Ahold, Centerpulse, Corp Mapfre, Gamesa, Corp Tecnologica, Adidas-Salomon, Schindler Holding, Novartis, Cap Gemini SA and Alstom.
Minimum investment in the Dublin fund is £5,000. The initial charge is up to 5% and 3% intermediary commission is paid.
The annual management fee is 1%, and a performance fee will be incorporated. On the Guernsey-based fund this is 20% of any returns after the high water market of 6%, regardless of stock market conditions.
Collins Stewart is now discussing with Dublin regulators about how an absolute performance fee can be incorporated.
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