Two of Investec’s more esoteric fund names are to be dropped in a rebranding exercise.
The £79 million Capital Accumulator fund will become the UK Total Return fund later in August.
‘Capital Accumulator’s focus has been exclusively to produce steady capital growth and not provide an income,’ a spokesperson for Investec told Wealth Manager.
‘However, there has been a diminishing supply of instruments which achieve this remit. Given that the fund now includes securities which provide the potential for income, the name UK Total Return describes the fund to our clients more clearly.’
Capital Accumulator had originally focused on zero dividend preference shares and structured products, but is now a UK equity fund that also hedges its exposure through short index futures.
Managed by David Lynch, it has returned 13.9% over the past three years compared with an average of 15.3% from its Mixed Assets sector. However, it also boasts top-decile risk characteristics in that peer group and a top-quartile Sharpe ratio.
The £472 million Global Free Enterprise fund is currently run as a mirror of the £800 million offshore Global Strategic Equity fund. ‘For consistency and clarity, we have aligned their names,’ Investec stated.
Managed by Mark Breedon, Global Free Enterprise has returned 34% over the past three years, top decile within its Global Equities sector where the average fund has returned 22.3% through the period.
Investec added that both funds’ risk profiles would remain the same.