Investment management boutique EIM has taken its first steps into the retail market with a Ucits Dub...
Investment management boutique EIM has taken its first steps into the retail market with a Ucits Dublin-domiciled Europe-focused multi-manager product with a minimum of e5,000.
With Ucits still not encompassing fund of funds the new product, Access to Asset Allocation International, has been structured along multi-manager lines with segregated accounts being given to five managers.
The new fund is based on a programme originated for the Swiss-based AAA foundation which provides multi-manager portfolios to institutional investors and high net worth individuals.
Money is allocated to five managers: Newton, a concentrated growth manager, Gartmore, also growth-focused but more diversified, GLG which is 50% trading and 50% opportunistic, as well as Frankfurt-based Value Management and Research, a concentrated bottom-up value manager, and Comgest, a non-cyclical concentrated growth-oriented manager.
Allocation between the different managers is dynamic, with manager Christophe Mauron able to vary the relative weightings according to views on performance and market conditions.
The product has received e18m from one client and has commitments for another e20m. According to marketing manager Gregoire Teze, the fund will need to reach a critical mass of around e100m before it is fully available to the retail market, when the minimum investment will be e5,000.
Once this is established the fund will consider moving into the retail market with other products based on the Swiss foundation. This currently has three other compartments, covering Japan, Asia and the US.
EIM's management charge is 1.5%, with the underlying managers taking around 1%.
Set up in 1992 by Arpad Busson, EIM has allocated on behalf of its clients around $7bn to third-party money managers. Its process is based on the evaluation, selection and allocation of assets to specialist managers in both the alternative and the long-only fields.
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