Credit Suisse this week launches its Global Post-Venture Capital fund and is looking to run a portfo...
Credit Suisse this week launches its Global Post-Venture Capital fund and is looking to run a portfolio of 100-130 stocks, writes Leo Bland.
The Oeic fund will have no market cap restrictions and, as previously reported by Investment Week, will be run from New York.
The US portion of the portfolio will be managed by Elizabeth Dater and the non-US equity exposure by Harold Sharon. A team of 26 will be involved in researching stocks for the portfolio, with 14 focusing on North America and 12 on the rest of the world.
The broad investment universe for the fund will be stocks which have benefited from venture capital investment over the last 10 years. The US post-venture capital team sees more than 2,500 companies a year with the international team seeing around the same number.
Credit Suisse is also running an initial charge discount on the fund for the offer period between 16 October and 3 November. The 2% discount will take the initial charge to 3.25% from 5.25% on the retail share class, the fund will have a 1.5% annual management fee. Global Post-Venture Capital will also be available as a mini or maxi Isa. IFA commission is 3% initial and renewal commission of 0.5% is offered on Isa and retail Oeic investments.
Dater said: "Post-venture capital stocks are poised for enormous growth, yet still trade at a discount to their growth rates. Credit Suisse Asset Management can exploit these trading inefficiencies by identifying mispricing, securing a head start before the information gap is closed and consensus earnings forecasts are upgraded. The rewards from spotting the potential before anyone else are huge.
"Unlike smaller company funds, the portfolio is not constrained by market cap limits and so does not have to sell just prior to the most dynamic growth period.
"New stock markets like the Nasdaq and the Neuer Markt have been created specifically to cater for young venture-backed companies and this ready-made liquid market is further fuelling growth potential."
The group added that it has databases on around 2,000 venture-capital backed companies and monitors the portfolios of around 600 venture capital partnerships. Credit Suisse Asset Management runs around $4.4bn in post-venture capital stocks from New York.
The portfolio, which is based on a Credit Suisse US mutual fund of the same name, will have around 49% in the US, 13% in the UK and 7% in Japan. Exposure to other markets will include 4% in Germany and 4% in Israel. The proposed largest holdings include Cisco Systems, Amvescap and 3i Group.
The minimum lump sum investment is £1,000 and the minimum regular investment is £50 a month for Oeic investments and £100 a month for Isas.
Targeting intermediary market
Represents £8trn in assets
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