Ardevora plans UK domiciled version of UK Income fund

The launch, pencilled for the first half of 2012, is being lined up as a way for the recently launched boutique to gain greater coverage on platforms – broadening access for UK retail investors.

The existing £15.3m UK Income fund, which was launched in January 2011, is domiciled in Dublin, and the UK version would aim to mirror that fund.

“This will help us access the wider intermediary market by gaining greater coverage across fund platforms, particularly those that do not currently take offshore funds,” said head of retail sales Rob Page.

“We have not made a final decision on the most efficient way of achieving this and are currently looking at a number of different options regarding structure and distribution.”

Co-manager Mr Lang (pictured) said fully redomiciling the fund in the UK would be “a lot of hassle”, but a mirror version would make sense if there was sufficient demand from investors.

Mr Pattisson added: “We have our three core products and that is what we are going to focus on for the first five years. There may be variations, but effectively the core is UK and global, and everything else is a spin off. We will be very, very careful about what we do and keep the business simple.”

The UK Income fund lost 2.5 per cent in its first 12 months to January 11, which would rank it in the second quartile of the IMA UK Equity Income sector - which mainly houses UK-based funds - over the period.

However, the managers added they were unlikely to create onshore versions of their two long/short portfolios - the £5.1m Global Equity fund and £3.5m UK Equity fund.

For a profile of Ardevora Asset Management’s first year in business, see next week’s Investment Adviser.