Three products launched as part of strategy to raise group's offshore profile
Govett Investments is adding three funds to its Jersey range as part of the group's efforts to build up its offshore presence.
Three blue chip funds have been launched, each covering 30 of the largest stocks in the UK, US and European markets. They will be strongly tied to their benchmarks, although they are not trackers.
The company also hopes to add a fund to its Dublin range. The launch date has been set at 9 July, depending on final approval from the regulators.
John Murray, Govett's chief investment officer, is managing the UK fund, Peter Kysel will run the European product and Baltimore-based Gil Knight has control over the US portfolio.
Bill de Lucy, head of international development at Govett, has been charged with reanimating the offshore range by visiting advisers and intermediaries, especially in the Far East, and gaining global distribution through arrangements with life companies.
These funds are on top of the 16 that Govett already has in its Jersey and Dublin domiciles.
De Lucy was hired last December to revive Govett's stagnant offshore strategy. He has been spending his time trying to get Govett's funds included on life companies' select lists for their offshore bonds. Scottish Provident has agreed to include the funds and there are two more life companies who are in the pipeline, he said.
De Lucy said: 'People like Royal and SunAlliance and Royal Skandia ' they have worldwide distribution.'
He is also talking to brokers and consultants, who can directly access Govett's funds to put in Personal Portfolio Bonds.
The primary problem is increasing the profile of the Govett name in an offshore fund range. De Lucy said: 'The name is not a problem, it is known, but the awareness of what we have is not there.'
He hopes to emulate the success he had with Investec, where he marketed the well-known Wired fund. The Jersey funds have a 5% initial charge, a 1.5% annual fee and give 0.5% commission. The minimum investment is $5,000. The timing will be good for Gil Knight, who manages the US portfolio, if his recent declaration, that the US large-cap market has bottomed, turns out to be correct.
He said: 'The first quarter of the year was quite nasty for US equity markets, all of which witnessed fairly major declines. Looking ahead, however, we believe much of the equity damage has been completed and there is probably minimal downside to the large capitalisation US equity indices.'
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