Pavilion Asset Management is to enter the retail market with the launch of an Oeic containing eight ...
Pavilion Asset Management is to enter the retail market with the launch of an Oeic containing eight sub-funds.
The first two sub-funds will be launched in late January 2002 and will be the Pavilion UK Growth fund and the Pavilion Socially Responsible Investment fund (SRI). These will be followed by the Pavilion UK Equity Income fund and the Pavilion Special Opportunities fund.
By the end of 2002, a further four sub-funds are planned for launch, to include a fixed income fund and a sector rotation portfolio.
All the portfolios will be managed by investment director Alan Perkins, who also runs the institutional Family Asset Trust, and his five-strong team. Perkins will be responsible for portfolio construction and the financial sector, the other members of the team each have sector analytical responsibilities.
The retail push will be the responsibility of head of sales and marketing Peter Hicks, who joined the group a month ago from Framlington where he was international marketing executive and director of unit trusts.
He said: 'UK Growth and SRI will both have around 60 stocks in their portfolios. We are not going down the route of focused funds, for which there is a current trend, but we also do not believe you need 100 stocks in a portfolio when 60 will do the trick.'
The SRI fund will be benchmarked against the All-Share index rather than FTSE4Good.
Hicks added: 'We don't believe you should compromise performance by being restricted to an ethical benchmark. The fund managers will look at the stocks in the All-Share and decide what they like. They will then screen companies in to their investable universe. Simply because a stock is an oil company it doesn't mean we won't use it if, for example, it is working at being as environmentally friendly as possible.'
The funds will be aimed at intermediaries, discretionary managers and institutional investors. There will be a retail and institutional share class on the Oeic.
The minimum subscription for the retail class is £500. There is an initial charge of 5% and an annual management fee of 1.5%. Commission is available at 3% with renewal of 0.5%.
Although there is a six-month qualifying period for intermediaries to receive trail, this will be back-dated and paid from the start of the investment. The Oeic is still waiting final FSA approval but there is a fixed price three-week offer period planned in late January 2002. The group is looking to talk with fund managers and intermediaries in the coming months.
‘Important to have an anchor’
Lack of innovation for solutions
Some 2,000 consumers affected
Achievements, charity work and other happy snippets