Octopus Investments is launching its first OEIC which will invest in 30-50 UK smaller companies.
The CF Octopus Opportunities fund will focus on the sub £100m market capitalized companies listed on AIM or the main stock exchange with an optimum fund size of £50m.
The fund will be managed by Richard Power and David Crawford who already run £120m of AIM investments across the Octopus VCTs, EIS and IHT portfolios.
The management team will be able to hold unlimited cash and also has the ability to short a relevant index in adverse market conditions.
Octopus managers have been running a model portfolio of the Opportunities fund since 1 December 2006, which has generated a return of 31.8% versus a 10.8% rise in the FTSE All Share.
Richard Power, fund manager, Octopus Investments says: “Over 60% of the quoted UK companies have a market value of less than £100m. However, the rapid expansion of AIM has led to increased inefficiency at this end of the market, compounded by limited broker coverage and institutional awareness. We believe this creates the opportunity to continue to uncover fast growing companies at sensible valuations”.
Octopus is offering a special share class for launch investors available on the first £10m invested in the fund. These seed stage investors will benefit from an annual management charge discounted from 1.5% to 0.5% for the life of their investment.
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