R&M launches global fund duo for Stanic

River and Mercantile is launching new Global Equity and Global Opportunities funds for former Newton manager Alex Stanic in October.

Benchmarked against the FTSE All World, Global Equity aims to beat the index by 2% per annum, while Global Opportunities has a 3-4% target.

R&M Global Equity will be a portfolio of 80-110 stocks, with individual weightings capped at index plus 5% and sector exposure set at a maximum of index plus 12.5%. It can move its US weightings to 20% either side of the All World and 15% for any other market.

R&M has run a model portfolio since 8 July, with the fund positioned 31.5% in the US, and 11.8% in the UK - with 7%-8% each in Brazil and Hong Kong.

Financials is the largest sector at 20.7%, with 12.8% in consumer services, 11.8% in industrials and 11.1% in technology.

Stanic's Global Opportunities fund will be a more concentrated 40-60 stock portfolio, with less ties to the index.

Any stock can go up to a 10% weighting while sectors can go 33% above the benchmark. The fund has no geographical constraints.

Its model portfolio, running since 15 June, has similar geographic weightings to Global Equity. Financials make up a little less than 20% of the fund, with consumer services nearly 16% and technology about 12%.

The funds are due to come to market in early October and R&M says it expects to raise a minimum of £2m for each fund during a three to five day offer period.

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