By Jenne Mannion Premier International Investments is to launch a multi-manager global fund by the...
By Jenne Mannion
Premier International Investments is to launch a multi-manager global fund by the end of October, subject to regulatory approval.
To be called the Premier International Investments Mackenzie (PIIM) Global Select Fund, the portfolio will be a dollar denominated, Luxembourg-domiciled Sicav.
The fund, previously reported in Investment Week, will combine the ideas of five investment management teams, which will each select approximately 10 securities, to comprise a portfolio of around 50 stocks. Minimum investment in the fund is $2,500 or $50 per month.
There is a 5% initial charge on the fund with 4% initial commission paid to IFAs. The annual management charge is 1.5% and there is a 0.5% trail commission payable to IFAs.
Douglas Adams, marking director at Premier Asset Management, said the five-manager strategy meant some sections of the portfolio would always outperform, regardless of the economic climate.
He said: "This fund takes the multi-manager approach because we believe no one house has a monopoly on the best investment approach, the best people or the best ideas. Appointing five fund managers means we can include the expertise of five rather than one and therefore achieve better results."
The launch of the new portfolio follows Canadian mutual funds group Mackenzie's launch of a similar multi-manager fund, Universal Select Managers, in Canada in October 1998.
Adams said to date that fund has been the most successful fund launch in Canada raising the equivalent of £4.5bn.
Three managers from the Universal Select Managers fund will each manage a portion of the PIIM Global Select Portfolio.
They include Mackenzie Investment Management fund managers Paul Baran, who will manage the US blue chip portion of the portfolio, and Jim Broadfoot, who will manage emerging US Growth.
The third manager, on both the Universal Select Managers Fund and the new PIIM Global Select Portfolio, is Peter Cundill of Cundill Investment Research, who will run global equities, taking a deep value approach. All three managers are based in the US.
Other fund managers on the PIIM Global Select fund will be Max King of JO Hambro Capital Management, who will oversee the pan European portion of the fund.
Richard Muckart, Premier Asset Management's Far East fund manager, will manage the fifth area of the fund, investing in the Far East including Japan, and will seek out growth and momentum. King and Muckart are both based in London.
Baran said with five managers on the portfolio there is room for the stock ideas to overlap, particularly within US and global equities. In this case both fund managers would hold the stock, with the overweight position being justified by the conviction of more than one fund manager.
There are no set rules on the weighting of individual stocks in each manager's portfolio, beyond standard regulatory rules, therefore the managers can be heavy in few select stocks and lighter in others.
Baran said the managers are likely to spread their stock exposure across a number of sectors, for example, his portfolio, if invested today, would include Nortel Networks, Microsoft and JDS Uniphase and Texas Instruments.
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