Flemings is to launch a UK Strategic Value unit trust on 8 May with a focus on large and mid cap sto...
Flemings is to launch a UK Strategic Value unit trust on 8 May with a focus on large and mid cap stocks.
The portfolio, which will be run by the pan-European equity team headed up by Andrew Spencer, is to have a 50% weighting in FTSE 100 and 50% in the FTSE Mid 250.
Spencer runs the group's Save & Prosper Premier Equity Growth unit trust on the premise that only true value and true growth stocks provide good long term returns and everything else should be dispensed with. The launch of Save & Prosper UK Strategic Value, which will run a portfolio of around 140 stocks, is aimed at giving UK investors to the pure value end of this approach.
The timing of the fund launch coincides with the fall off in high growth stocks which has taken place across major markets in the last few weeks.
The unit trust will have an initial charge of 5.5% and an annual of 1.5%. There is 3% initial commission available and 0.5% renewal. The fund will be available through a Pep and an Isa. A 2% upfront discount is available until 19 May for lump sum investments of £2,000 and above.
Flemings does intend to offer a pure UK growth vehicle in the future although it has not yet decided on a launch date.
As a group Flemings has already launched pure growth and value offshore funds covering European equities. These were first reported by Investment Week in January this year. Spencer and James Elliot are running the Fleming European Strategic Growth portfolio while Spencer and Chris Complin are running the Fleming European Strategic Value fund
In the frAA-rated S&P UK Equity Growth Spencer looks to take small bets on a large number of stocks as a means of keeping risk low and dampening down volatility of the portfolio against its benchmark index.
He aims for a tracking error from the index of 3% to 4% and remains fairly close to the benchmark in terms of stock and sector weightings within the portfolio.
The unit trust is ranked 27 out of 194 in the UK All Companies sector over five years.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till