Tony Byrne’s View 4 September 2017

Sep 4, 2017 | Wealth & Tax Blog

Regular readers of my View blogs will be aware that we have formed our own fund management company, Intelligent Wealth Fund Managers, and that we are going to launch our first fund, The Intelligent Wealth Fund, in early 2018.

We have recently decided to change our fund management company name to Minerva Money Management because we learned that our regulator, the FCA, will not allow us to have a fund name that is the same as or similar to our company name! So we decided to swap Intelligent for Minerva who was the goddess of wisdom. We changed Wealth for Money.

The reason why I wanted the words Intelligent and Wealth is because I am determined that our fund should be managed intelligently which means that the fund has a wide remit that allows it to invest in whatever sector or sectors that have the greatest investment potential. This means that unlike other funds which have a narrower remit e.g. bonds, US equities or commodities, The Intelligent Wealth Fund will have the flexibility to invest in the areas with the greatest prospects and disinvest in the areas with the poorest prospects.

The Intelligent Wealth Fund will invest in 8 themes which are as follows;

Biotechnology

Robotics

3D printing

Internet of Things

Renewable energy

Banking payment systems

Transport

Media

These are the sectors which we believe have the greatest prospects for investment growth over the next 5-10 years. Our analysis is the culmination of a long period of studying many books, attending a number of seminars/workshops and reading lots of magazines/newspapers/Internet articles.

We are absolutely convinced that our fund will be highly successful. We have already created a ghost portfolio of shares and the backtracked past performance record is truly impressive. The simulated past performance over the last 12 months is 43% and over the last 5 years it is 24% a year!

We plan to include The Intelligent Wealth Fund as the satellite element of a core satellite portfolio for all of our clients early next year after it has been launched. So what is a core satellite portfolio?

It means that the core of the investment e.g. 80% will continue to be into one of our wrap platforms, Parmenion or Standard Life, invested in a conservative way in low cost Index Tracker funds. The balance of c.20% will be invested in the Intelligent Wealth Fund which is the high risk element of the strategy which will typically be medium risk overall. This means that the investment risk level for our clients will remain unchanged yet their overall returns are likely to improve.

We like it and we hope you will like it too.