Fiducian launches ultra growth fund

property/emerging-markets/

11 November 2008
| By Benjamin Levy |

Fiducian has launched an ultra growth fund despite plummeting share markets as a result of advisers’ discussions with clients on the need for a high growth strategy.

While the fund is expected to generate high returns over a period of 7 to 10 years, Fiducian warned investors to expect significant volatility and potential capital losses if and when markets drop in the meantime.

Fiducian managing director Indy Singh said the state of the share market did not dissuade the company from launching the fund, and those asset classes in which the fund was focused made the fastest recovery after a weak market.

The fund has more than a 95 per cent allocation to growth assets, with a 60 per cent exposure towards domestic and international small-cap companies. Small-cap companies did better over the long-term than large-cap companies, with a stronger compounding factor in the long run, Singh said. The fund also has a 20 per cent exposure towards emerging markets, with the rest allocated towards property, technology, and cash.

It was important to create a high growth fund that was not a direct copy of other high growth strategies, Singh said.

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