Portfolio is planning a February launch for a recovery fund of funds which will invest in income, sp...
Portfolio is planning a February launch for a recovery fund of funds which will invest in income, special situations and recovery funds, writes Robert Stock.
As exclusively reported in Investment Week in November last year, the Portfolio Managed Recovery Fund will be managed by the Portfolio Investment Committee which meets weekly.
The pricing and commission structure will follow that of the existing fund of funds range. The initial charge will be 5%, with a 1.5% annual management fee. IFAs will be able to take 3% initial commission, which is rebateable. Trail commission is 0.5%.
Paul Talbot, chief executive of Portfolio, said: "The fund will concentrate on the funds that invest in old industries and historically that has been very much the old equity income funds.
"If you look back into the 1980s, the equity income sector was the top performer. In the 1990s growth stocks came into their own and some of the ratings in the old industries have fallen to ridiculously low levels."
Talbot said that the fund would invest in a wide variety of management styles. He confirmed that the names currently being considered included Bill Mott of Credit Suisse and Neil Woodford of Perpetual.
The fund of funds mandate does not exclude investing in income funds using a barbell strategy.
23% fall since Q1
Achievements, charity work and other happy snippets
Including advice firm Chadkirk WM
More dates to be announced
Lowest level since 2016