Scottish Value Management is looking to build up a portfolio of 30 companies in its Ofex Investment ...
Scottish Value Management is looking to build up a portfolio of 30 companies in its Ofex Investment Trust.
The group has raised £6m for the trust through a placing of ordinary shares and the portfolio is to be run by David Stevenson.
He said: "We are not looking to replicate the Ofex universe in the manner of a tracker fund. We will take a careful stockpicking approach to find companies with the right business model to carry them quickly into more senior markets."
The Ofex market comprises stocks with a market cap of up to £200m. The new trust will be invested heavily in technology, media and telecommunications, business outsourcing and support services.
Stevenson is looking to keep a minimum 20% of the portfolio in stocks which have graduated from Ofex within the last 12 months, 20% in businesses listed on the Ofex market, and 20% in companies which he believes will come to Ofex within the next year.
The trust will be structured as a quasi open-ended investment company, essentially an investment company with the option to buy-back or issue shares.
Stevenson said: "This facility allows us to manage the NAV more effectively. We also believe this fund has the potential to grow considerably, if this is the case we will be able to issue more shares as and when they are needed.
Scottish Value will receive an annual fee of 0.75%pa of the trust's assets as well of an incentive fee, equivalent to 15% of outperformance of the benchmark, the FTSE Fledgling Index.
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