Ex-Liontrust boss launches first fund through Vinculum

Former Liontrust CEO Nigel Legge's new fund management venture Vinculum is to launch its first offering, based on a 'no outperformance, no fee' proposition.

As first revealed by Investment Week, Legge is returning to the industry with new venture Vinculum, which will launch its first fund early next year.

The company will launch a global equity fund on 3 January 2012, run on a ‘no outperformance, no fee' basis.

The OEIC will be comprised of 50 global listed stocks and will aim to outperform the MSCI World TR benchmark.

It will levy no initial charge and no AMC, the only fixed charge being an operating fee of 0.25% of funds under management, payable to the fund's authorised corporate director IFDS Managers.

A 20% performance fee will be charged on the fund's relative outperformance of its benchmark in any given quarter. The minimum initial investment will be £1,000.

Legge will be joined on the new venture by Bjarne Jensen, CEO of StockRate Asset Management. Vinculum, which is planning a range of long-only equity portfolios, will use StockRate's proprietary investment process StockR8 to underpin all its portfolios.

The process aims to identify, rate and select companies of the ‘highest economic quality' based on their ability to demonstrate superior financial and earnings strength over time.

"We do not believe in forecasting or in valuation and are free of star fund manager risk. Our focus is on trying to eliminate human error from the investment process," said Jensen.

"Bjarne and I have been talking about teaming up since early 2009 and I am thrilled that we have now finally been able to make it happen. We both share the same vision for what a fund management company should offer and a similar determination to create something new in the marketplace," said Legge.

Legge exited the industry last year after spending 15 years at Liontrust, during which time he oversaw the group's expansion and listing on the LSE.