Charlemagne Capital is set to change the structure of its Magna Europa fund to become a Dublin-domic...
Charlemagne Capital is set to change the structure of its Magna Europa fund to become a Dublin-domiciled umbrella to target the retail market. The first fund to be added is a Russian portfolio, hoped to be available in the new year.
The Magna Europa fund is already domiciled in Dublin. However, by changing it to an umbrella structure it will be easier to establish funds in Ireland to target the retail market. The structure will be called the Ollo Umbrella funds.
Charlemagne Capital already has a Russia fund, but it is only available to the institutional market. The new Ollo Russia fund will be a similar version to this, but will be available to retail investors.
Stefan Botcher and Andrew Wiles will be managing the portfolio.
Investment strategy for the new fund will be based on a bottom-up stock-picking active management approach.
Stocks are chosen firstly through a liquidity screening. After this, the stocks undergo a due diligence process. This looks at earnings growth, quality of cash-flow generation and management. Company valuations are compared to others in their sectors and meetings are undertaken.
The internal analysis is driven towards measuring performance in the context of economic value-added.
Charlemagne Capital believes there are two ways in which a company can create economic value. The first is through operating in financially attractive markets and the second is through building and maintaining a competitive advantage.
The Russian portfolio will invest in blue chip type companies. Companies in the institutional fund include Lukoil and Surgutneftegas.
Vada Lotan, European marketing executive at Charlemagne Capital, said the strong oil price and President Putin's reforms have both benefited the economy.
It will be made available to investors in Germany and Austria first.
Lotan said this is because these countries are closer to Eastern Europe than other regions. It would make sense to test these markets out first.
Minimum investment is e1000 and the management fee is 1.75%.
The existing Magna Europa portfolio will not changed, but is to be renamed the Ollo Eastern fund.
£1bn business since inception
Considered doing so in 2015
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