Sovereign's fundless fund
Sovereign has launched a fundless fund that in some ways competes with services being offered by a number of sharebrokers.
Friday, September 10th 2004, 6:28AM
Direct Selections is similar to Goldman Sachs JB Were’s PIPs service and the First New Zealand Capital Portfolio Series.
With these services the broker recommends a specific portfolio of securities and these are bought and held on an investor’s own account.
From time to time the broker will recommend a change to the portfolio, as First New Zealand did this week. The investor then needs to follow these instructions.
Brook Asset Management is the research manager for the Direct Selections Australasian Share Selections service.
ASB Group Investments provide research for the two bond selections of investment-grade securities.
Sovereign says the bonds which, if bought outside of this structure, would usually require a higher entry-level investment.
A key point of the Direct Selections offering is that it is being made through the Sovereign’s mini-wrap Select Investor Service.
The big benefit of this service, particularly with the shares portfolio, is that it is tax-effective for capital account investors.
Sovereign general manager of distributed products Scott Black says Direct Selections had a soft launch with advisers earlier this year and the bond selection had proved popular. Now the share selection service is picking up in popularity.
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