Stockbroker JM Finn & Co is entering the UK retail market with the launch of its first Oeic sub-fund...
Stockbroker JM Finn & Co is entering the UK retail market with the launch of its first Oeic sub-fund, a global growth fund.
The move follows the entry of rival stockbroker Durlacher into the domestic retail fund market last week, with the launch of UK Growth and Blue Chip funds.
As with the Durlacher funds, investors in the JM Finn Peligrin fund will be able to monitor transactions made by the fund manager by visiting the group's website at www.peligrin.com. The site includes performance data, the rationale behind stock selection and contact details.
The JM Finn Peligrin fund will be run with a pragmatic growth mandate, primarily investing in global equities, but with the flexibility to invest in global bonds to ensure capital preservation in adverse equity market conditions.
The fund has been available to clients of JM Finn since last August but is being opened up to the wider investment market, high net worth individuals in particular.
David Stewart, who joined JM Finn from the Abu Dhabi Investment Authority last year, will manage Peligrin.
In shaping the portfolio, Stewart will marry both top-down analysis and bottom-up stock selection. The top-down view will be used to spot macro themes that go against the consensus view and create valuation anomalies.
Stewart said he is unrestricted in terms of where he invests as the fund is not a benchmark-aware vehicle. 'There are no geographical restrictions, though I will tend to stick to the developed markets, which I know best. My remit is to go where I can to find value,' he said.
Similarly, the manager is not restricted in terms of market cap exposure, although he is struggling to find attractive valuations among blue chips in the current market conditions.
The bottom-up stockpicking style will particularly target turnaround stories and those companies with strong competitive advantages in industries with high barriers to entry.
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