The fund is available for a management charge of 0.25%, with the total expense ratio (TER) capped at 40bps.
Richard Jones, head of sales & marketing at DSP, said the fund is a true active vehicle in terms of the companies fund manager Nick Mottram holds in the portfolio, and that the company is hopeful it will outperform the MSCI All Countries World index by 3 to 5% per annum on a net of fees basis.
“You’ve obviously got to pick the right stocks, but the process Nick has used for many years has proved to be successful,” he said.
Mottram uses an active, bottom-up stock-picking approach, seeking out attractively-priced, quality companies which are growing earnings with strong performing share prices. He ranks over 6000 companies from across the globe based on how well they score on these fundamental features, with only the 100 best stocks included in the portfolio.
Jones said there were a number of reasons for the low level of pricing on the fund: “We looked at pricing from a different starting point. There’s potentially very substantial capacity – the fund is currently at £10m and our analysis shows it could run through to £3-5bn.
"That was a real consideration when thinking about how to price. It’s also a relatively low-cost product to manage. We felt this combination enabled us to make the fund available for a low fee relative to what’s in the active market. We can afford to do it and it’s a good outcome for investors.”
Being so keenly priced makes the fund an alternative to other active funds which are charging much higher fees for similar or maybe even inferior products, added Jones.
