BWD Rensburg is to launch a UK mid-cap unit trust this week managed by Stuart Sharp, writes James Th...
BWD Rensburg is to launch a UK mid-cap unit trust this week managed by Stuart Sharp, writes James Thorneley.
The group has already seeded the portfolio with £5m from private clients and hopes to raise a further £6m during the launch period. It will be called BWD Mid-Cap Growth Unit Trust.
The fund is likely to be placed in the Autif UK All Companies sector. Sharp already runs the group's UK smaller companies unit trust.
The management charges on the new fund are to be 4.5% initial and 1.5% annual. Intermediaries will receive initial commission of 3% and renewal of 0.5%.
The minimum investment will be £500 with a minimum monthly saving scheme contribution of £25.
Mid-cap companies have enjoyed good performance compared to blue chip stocks this year. As at 8 July the FTSE-250 index had risen by 25.10% year to date. The FTSE-100 index has risen by 11.47% over the same period.
The fund will fill a gap in the group's range of unit trusts. The Leeds-based group has five other unit trusts, Balanced Portfolio trust, High Yield Bond trust, UK Equity Growth Trust and UK Equity Income Trust and UK Smaller Companies Trust.
Sharp's UK Smaller Companies fund has enjoyed good performance over a three year period.
According to Micropal over three years the fund was ranked five out of 62 and rose by 44.1% compared to an average rise of 22.1%.
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