Ed Burke and Stephen Whittaker will aim for absolute returns on 30-40 stocks
Invesco Perpetual is to launch an aggressive UK fund on 2 July, composed of between 30 and 40 stocks, to be run by Ed Burke and Stephen Whittaker.
The unit trust will aim for absolute returns and is designed to complement the UK Core and UK Growth funds managed by Robert Moss and Whittaker respectively.
The UK Aggressive fund is being soft-launched and will initially only be available via telephone dealing. Its arrival completes a tiered-risk approach to the group's UK offering, according to Mike Webb, head of UK retail at the group.
The fund, which has the aim of doubling returns on a three-year view, was to have been launched out of Perpetual a year ago but was put on hold pending integration with Invesco.
The fund has a minimum investment of £1,000 with an initial charge of 5.26%, an annual management fee of 1.5%, commission of up to 3% and renewal of 0.5%. The launch period, during which the unit price for both accumulation and income shares will be 50p, closes on 23 July. Manager Ed Burke, who runs the UK portion of the Invesco Perpetual International Core fund, said it was a natural extension of the contrarian style that had been developed in Henley but that he would draw on the best ideas from both London and Henley to construct his portfolio.
He said the rationale behind the fund was to free the manager from benchmarking, which fills portfolios only with holdings the manager needs to comply with index requirements. Burke, who was head of UK equities at Robert Fleming Securities before joining Perpetual in May 1999, said: 'In many portfolios, you end up with a lot of baggage which is there for risk reasons and negates the stock selection.'
The fund will have a minimum stock exposure of 1.5% per holding. Burke said: 'Once the fund gets to around £100m I think we have to seriously talk about it, because in all honesty this approach does not lend itself to a fund of more than about £150m or so.'
Burke said that while the fund was a long-term buy and hold, he believed a larger fund would limit his ability to buy into some of the very small stocks he would want to buy.
He added: 'The risk control is all about the stocks. You can't dress this up in any other way. It is about knowing these companies very well and selling as soon as you recognise that something is going wrong.'
Invesco Perpetual has not ruled out the possibility of launching further focused funds for equity markets such as the US and Europe. The aggressive fund sees it follow Aberdeen, Gartmore and Royal & SunAlliance into the market.
Invesco Perpetual's specialist funds division is also looking to launch a closed-ended global private equity to institutional clients.
For further information, contact: 01491 416000.
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
Follows string of appointments
Follows acquisition of BlackRock's DC platform
‘In the know’
£116.8m of benefits received by customers