InvestmentsMay 2 2013

Product review: Rathbone Heritage fund

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Rathbone Unit Trust Management is targeting wealthier clients with an unconstrained global total-return fund focusing on capital preservation.

The Rathbone Heritage fund is a stock-picking global value product that follows the current investment process already used by the Rathbone income team – but this fund has a total-return proposition.

The group intends the fund to be flexible, focused and transparent, and will be selectively marketed to clients who support its processes over the long term.

Having no constraints, the fund has the flexibility to invest in the greatest opportunities. By using a conservative attitude to stock selection, Rathbones said the portfolio will be limited to around 30 investments and will be diversified by sector and earnings-risk exposure.

Managed by Carl Stick, who has also been running the £524m Rathbone Income fund since 2000, the new offering will be supported by co-managers Alan Dobbie and Elizabeth Davis.

The fund will have neither an income mandate nor geographic restrictions.

Sitting in the IMA Unclassified sector, the fund will not follow an index or a benchmark and has no target return.

Minimum investment is £1m. Annual management charge is 0.75 per cent, plus a 0.15 per cent pa administration fee.

MM View:

Clearly focused on the wealthier client with a minimum investment of £1m, this fund has been designed with capital preservation and long-term growth in mind. It has only one share class, applicable to both retail and institutional investors, and has no initial charge or redemption fee.

It may not be a fund advisers will recommend to the average man on the street, however it will suit a wealth manager looking for a total-return fund selection.

The fund’s manager, Carl Stick, will be investing his own money in this fund, so his interests are aligned with those of other investors. He said it is a motivation to offer a high level of client dialogue “in a world that lacks loyalty long term”.

The fund also encourages advisers to engage with the investment team for a more personal, hands-on approach. This level of transparency will help advisers gain peace of mind and allow them to discuss how the fund is expected to perform in any market condition.


• £1m minimum investment

• Global stock-picking. fund with no geographic restrictions.

• Portfolio of roughly 30 holdings.

• Annual management charge of 0.75 per cent pa.

• No sector or benchmark tracked.

• No income mandate.