The Matrix Investment Trust Tracker Oeic will be forced to underweight the largest component in its ...
The Matrix Investment Trust Tracker Oeic will be forced to underweight the largest component in its benchmark index.
Unit trusts and UK Oeics cannot have more than a 10% portfolio exposure to a single stock but as of last Wednesday the £6.2bn 3i Group made up 13.58% of the overall benchmark the trust will be tracking, the FTSE All-Share Investment Companies index.
The manager of the fund, Barclays Global Investors (BGI), intends to have a weighting in the stock of 9.8% but stressed the 3i shares were very volatile and the trust's overall index weighting fluctuated between 8-14%.
The group said any excess exposure would be spread across the remaining top 114 members in the index, on a weighted basis. In total the index has 126 constituents.
Due to BGI being unable to fully replicate the index it is predicting a tracking error of around 0.75% if 3i remained at a weighting of about 13% the error would be 0.25%. For the year to 26 January the FTSE All-Share investment company index rose by 34.2%. During the same period the FTSE All-Share index rose by 13.1%.
Matrix Money Management is also launching the Investment Trust Performance Oeic, which is an actively managed fund of investment trusts and aims to outperform the Investment Companies index. It will be managed by Rossie House Investment Management, an investment boutique based in Scotland which focuses on managing portfolios of investment trusts.
The portfolio can invest in any of the 329 quoted trusts on the UK market and has the flexibility to invest in warrants, capital shares and zero dividend preference shares.
The offer period for both Isable funds closes on 11 February with a 1% discount on the 5.2% initial charge of the actively managed Oeic. The 1.5% annual fee remains unchanged. The initial charge on the tracker is 3.2% with a yearly fee of 1.175%. Intermediaries will receive 3% initial commission with 0.5% renewal for the active fund and 0.25% for the tracker.
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