Monday 24th April 2006 |
Text too small? |
What is it called and what sort of savings product
is it?
The Milford Equities Research Fund is a new managed fund which invests
in listed New Zealand shares.
Who is the company behind it?
It is run by Milford Asset Management a boutique fund manager run by a
group of well-regarded investment managers.
Who is the target market?
Any investor who wants exposure to a concentrated portfolio of shares
and can withstand a bit of volatility in their unit price.
What return does it offer?
The fund aims to beat the gross performance of the NZSX50 portfolio index
by 3% a year over a three-year rolling time period.
When was it launched?
February 2006
What other products is it like or is it competing with?
This fund is up against all the other New Zealand share funds and there
are likely to be more of these coming to market, following this week's
announcement on changes to investment tax.
Is it long term, short term or medium term?
Milford says people thinking of using the fund should have an investment
timeframe of around five years.
What is the unique selling point?
The two main selling points are the people involved, particularly Brian
Gaynor who is a high-profile analyst and columnist for the NZ Herald.
Also Milford believe it has the ability to pick stocks which are "mis-priced
and under-researched". Added to that it intends to have quite a concentrated
portfolio ie: a small number of stocks as opposed to holdings in lots
of different companies.
How strong a stomach do you need for it?
Reasonably strong. The fund doesn't follow an index and its performance
is likely to vary significantly to the market (both up and down).
What's the hitch?
The main hitch, as with all funds of this nature, are that the market
goes up and down and it's the skill of the manager which will be tested.
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