Guernsey-based asset management house and stockbroker Collins Stewart, which is in the advanced stag...
Guernsey-based asset management house and stockbroker Collins Stewart, which is in the advanced stages of a managed buy-out from Singer & Friedlander, is to launch a global technology fund that uses external hedge fund managers. Based on multi-manager principles, the US dollar fund will have the ability to invest up to 40% of the fund's assets in hedge funds. Current hedge fund allocations include Pequot Technology 15% and Arles Cayman Trust 15%.
Collins Stewart uses its own in-house selection process to identify hedge-fund managers. Kevin Boscher, investment director at Collins Stewart, aims to aggressively manage the risk and volatility of launching the fund at a possible peak in technology company valuations through the diversification of hedge and traditional fund styles and strategies.
The global technology fund is one of six new funds in the Hirzel House range to add to its existing Global Managed Fund and Acorn Income Fund. In total, Collins Stewart has £400m, the great majority of which is in balanced funds.
The fixed-income portion of Collins Stewart's assets is invested directly in the markets by the firm's own in-house managers, while equity investments are made through a range of external funds.
Structured as the Collins Stewart PCC, the six sub-funds comprise an open-ended investment company authorised as a Guernsey B scheme. The company is listed on the Channel Islands stock exchange.
Two of the new funds, the Hirzel House Sterling Bond Fund and the Hirzel House Global Bond Fund (US dollar), will be managed in-house by the 18-strong team at Collins Stewart Asset Management.
The other funds - a sterling international growth fund, a sterling international balanced fund, a US dollar international balanced fund, and a US dollar global technology fund - will use external managers, including Zweig DiMenna, Global Asset Management, Fleming, Mercury, Momentum, Frank Russel, Aberforth, SocGen and Putman.
Philip Eyre, Associate Director at Collins Stewart, said: "With these new funds we are aiming to build up our client base and expand beyond the Channel Islands. In addition, we want to provide existing clients with an opportunity to invest in our specialist funds without investing the minimum £250,000 for a segregated fund."
The objective of the various funds is to beat a selected benchmark. For the international balanced funds, the benchmark consists of 60% equities and 40% bonds, while the global technology fund has the Pacific Stock Exchange Technology Index as its benchmark.
Eyre stated: "We aim to generate a return in excess of the benchmark with a lower volatility."
The minimum investment in each fund is $10,000, with the global technology fund minimum a higher $25,000. All the funds charge a management fee of between 1.25% and 1.5%pa, out of which a trailing fee for the introducing intermediary may be negotiated.
In addition, the global technology fund has a performance fee of 20% of any outperformance of the benchmark, with a high-water mark.
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