SVM to launch Global Opportunities Oeic

SVM Asset Management is to launch a new Oeic fund, Global Opportunities, later this month. The fund, available from May 15, will be run by Colin McLean, managing director of SVM, and Donald Robertson, finance director.

McLean and Robertson, the co-founders of the firm, manage the Global investment trust, launched in 1991.

“The investment trust is not a traditional fund of funds,” says Mark Noble, head of retail sales and marketing at SVM.

“It was one of the first to use other people’s expertise and has an absolute return focus, which has helped in adverse times. While it is not exactly the same, Global Opportunities will exploit similar strategies.”

There will be a high degree of stock overlap between the two funds, says Noble.

According to data from SVM, the trust held 17.7% of its assets in hedge funds as at March 31.

While this will be restricted to 10% for the Oeic, under Ucits III regulations, the open-ended fund will have exposure to the asset class.

The fund will concentrate on three other core areas: specialist funds, private equity and investment in corporate activity to exploit value.

SVM wants to repeat the strong performance of the investment trust. According to data from the group, the fund has outperformed the FTSE World index in the past four 12-month periods ending March 31.

Its largest allocations were to specialist funds (29.5%) and resources (22.8%) in March. A further 10% of the portfolio was in property. This was mainly in emerging Europe, says Noble.

While SVM attempts to attract investors with a full rebate of the initial charge during the offer period, ending June 5, a capping limit has been set prior to launch.

“We have the capacity to put another 100m into the market,” says Noble. “The fund will be soft-closed at 75m.”

This will be followed by hard closure at 100m.

Initial charges for the retail share class are 5.25%. Annual management fees are 1.25%, with an additional fee of 10% for performance above the fund’s FTSE World benchmark. A trail commission of 0.5% will be paid.