With American markets still low, UK investment groups are looking to launch US funds into the retail...
With American markets still low, UK investment groups are looking to launch US funds into the retail market, writes Fiona Henderson.
SG Asset management launched its American fund earlier this month, Solus is planning to launch a North American Oeic at the beginning of October 2001 and ABN Amro is considering adding a US portfolio to its fund range.
The Solus US fund is to be managed by Chris Bertelsen, principal of the Florida-based investment group Hollister.
As first reported in Investment Week, KBL Investment Funds, which markets the Solus Oeic range, is linking up with US group Phoenix Investment Partners to launch the portfolio.
Phoenix Investment Partners offer mutual funds managed by relatively small satellite fund management firms across the US, which are part of the Phoenix group.
The fund will include holdings of all market caps and is likely to have around 65 stocks. It will be run in a value style with Bertelsen looking for companies with low P/Es and low price to sales ratios.
Bertelsen will pick 200 stocks from a universe of 5,000, which will then be screened down to produce the stocks in the portfolio by using criteria such as relative valuations.
KBL Investment Funds said the charging structure is likely to be similar to the Oeic subfunds already in its Solus range. The initial charge on the Solus range is 3.5% and the annual management charge for overseas funds is 1.5%. Intermediary commission is 3% and renewal is negotiable.
ABN Amro said it is considering a number of possible fund launches either by the year-end or into 2002. One of the proposed launches is a US fund. Nick Wells, marketing director of ABN Amro, said that following a recent purchase by its parent company of a small asset management house in the US, the group has added capabilities in that market.
He said: 'Certainly the US is in our sights following the purchase of Alleghany, which has some very interesting fund managers, but we are also looking at the possibility of a high yield bond fund. It would be nice to to launch a fund this year or next but we have to time it from an investment perspective not a marketing one.'
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