boutique converts two unit trusts to oeic sub-funds to be marketed through intermediaries
Cavendish Asset Management has launched a retail Oeic with two sub-funds to be marketed through the intermediary community.
The boutique has converted two unit trusts, Cavendish Opportunities and Cavendish Worldwide, into sub-funds of the Oeic and is offering up to 3% intermediary commission and 0.5% trail for the first time.
The two funds, which until now have been held almost exclusively by high net worth investors, will also be marketed directly. Paul Mumford, senior fund manager at Cavendish and manager of the Cavendish Opportunities fund since its launch in 1988, said the funds both benefit from their small size and flexibility.
He added: 'Through an active marketing campaign and the simplicity of the Oeic structure, a broader range of investors will be able to benefit from our high performing funds.'
Cavendish Opportunities invests in small UK companies, recovery situations and shares in sectors of the UK stock market that are out of favour, while the Worldwide fund invests mainly in global growth stocks but does not seek to replicate an index. Indeed, the geographical distribution of the portfolio can change considerably over time.
Cavendish Asset Management was formed in 1988 and manages funds for institutional and private clients. It currently has £260m under management.
The two funds are both strong performers in their respective sectors. The Worldwide fund, which has just over £6m in assets under management, is ranked second in the 155-strong global growth sector over one year to 11 November, on an offer-to-bid basis, having returned a loss of 12.7%. During that period, no fund in the sector produced a positive return.
The fund is ranked nine out of 129 funds in the three months to the same date, with an offer-to-bid loss of 13.6%. Only two funds produced positive returns in that period, St James Place Recovery and Johim Global.
Cavendish Opportunities, which is around the same size, is in the top quartile over both periods in the UK All Companies sector.
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