Bespoke Financial Consulting, the new investment firm and home of former UBS banker Robert Addison, has become the first in the UK to receive FSA approval for a structured Oeic, pipping such companies as Axa and Standard Life to the post.
Umbrella company CF Bespoke Investment Funds has launched its first sub-fund, the six-yearFTSE Growth Fund, which has 100% capital protection and 90% participation in the underlying FTSE100. Addison said the firm has deliberately gone for a simple structure and narrow distribution for the first product to get the message out into the market that the structure is possible. A second, probably very similar, fund will follow at the end of January.
Bespoke is the first company to use the new Ucits 3 rules to issue structured retail products. “We have chosen this structure over others used by our competitors as we believe it offers investors a number of distinct benefits,” said Philip Gilbert of Bespoke.
The six-year term of the sub-fund passes the 5% test to meet the new Stocks and Shares ISA rules coming into force next April, and each sub-fund will be an acceptable asset for Sipps, Ssas and offshore insurance bonds.
While growth is subject to capital gains tax, investors will have the chance to delay CGT liability by rolling over the investment at the end of the term into another product and delay CGT liability. The net asset value (NAV) of the fund will be calculated twice a month and published daily and investors will be able to redeem at NAV.
Gilbert added, “Investors … have the comfort of knowing that their fund is UK based and regulated by the FSA.”
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