BWD Rensburg is seeking FSA approval to launch its first focus fund, called Aggressive Growth, which...
BWD Rensburg is seeking FSA approval to launch its first focus fund, called Aggressive Growth, which it plans to bring out at the end of September, writes Adam Lewis.
The portfolio will invest in the UK and have between 25-40 holdings. It is to be an absolute growth fund, run on a bottom-up stock picking process, with no reference to benchmarks or tracking error, with a minimum portfolio exposure of 1.5% to any one company.
Mark Hall, fund manager of the BWD UK Equity Growth Fund, will be named manager on the product but it will adopt a team-based approach drawing on all the experience of the managers of the group's core UK funds.
Hall said: 'The vast majority of the fund will be UK invested. It may on the odd occasion have a corporate bond, or a continental European stock in it but it will mostly be invested in UK equities. As such it will be a best ideas fund, using the experience of Stuart Sharp and Richard Bullas on the small-cap desk, Leigh Himsworth, who runs the mid-cap fund, and myself and Colin Morton, who run the blue chips.'
Hall said that at first BWD is only looking to raise £2m to £3m on the fund, and at present is only marketing it internally. He said: 'The model we use for all our fund launches is to firstly attract internal money, then build up a good track record, and then we hope to attract the wider market place into the fund.'
Morton said that BWD is known in the market as being a consistent group with a range, which has a variety of good long-term, quality, low-risk core funds and in this product it is looking to be much more aggressive.
Hall said: 'While there have been a lot of focused funds launched of late, we are attempting to differentiate ourselves in that by being a fairly small fund we can be relatively nimble.
'There are no areas of the market that will be out of bounds. When you have a £100m fund it means that the small-end of the smaller companies spectrum becomes harder to get to due to a lack of liquidity. We can target all areas of the market.'
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