The iimia Accelerated fund has more than doubled in size since its launch on 30 April this year, gro...
The iimia Accelerated fund has more than doubled in size since its launch on 30 April this year, growing from £2m to £5.5m.
Managed by chief investment officer at iimia Nick Greenwood, the portfolio is an Oeic-structured fund of investment trusts and presently has 37 holdings. Since the fund went live at the end of April, it has posted growth of 19.9% against an 8.16% increase in the All-Share.
During July, Greenwood added, both the Real Estate Opportunities Zeroes (Reo) investment trust and Gartmore Irish were added to the portfolio. He said a core theme he is noticing is the beginning of an asset price bubble in Ireland, which he believes has been triggered by negative real interest rates. With Irish inflation at around 4% and interest rates at 2%, Greenwood is using Gartmore Irish and Reo, which has around two thirds of its assets in Irish property, to gain exposure to expected growth in the republic.
While actively investing in a market bubble may appear a risky strategy, Greenwood said the Irish growth story has not yet fully developed. He believes any likely future changes to interest rates will be visible because ECB is regarded as slow moving and rate changes are well flagged. A number of the fund's core holdings were sold recently, including the Henderson Smaller Companies investment trust. Greenwood said: 'The discount narrowed swiftly in July and the successful turnaround in performance led to demand for the shares exceeding supply.'
Over the three years to 13 August Henderson Smaller Companies' net asset value (NAV) fell by 70%, against a weighted average decline of just 16% in the UK Small Cap sector. More recently the trust has begun to outperform, with NAV rising 46% over the six months to 13 August, against a sector average rise of 35%.
During July, Greenwood also sold Henderson Absolute Return Portfolio, Fleming Japan, Gartmore Smaller and Herald, saying all the portfolios had performed well and become fully valued as a result. He has subsequently bought into Framlington's Innovative Growth portfolio.
In terms of themes within the fund, 20.7% of the portfolio is invested in special situations strategies while 19.7% is in zero dividend preference shares of split capital trusts.
Geographically the portfolio's two chief weightings are in the UK and Continental Europe with 31% and 26.5% invested respectively.
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