Linear Investments offers an alternative solution to investment companies who have funds that may require a new lease of life.
A major effect of the current surge in popularity of passive investments, particularly ETFs has been to reduce fees and therefore profitability in the investment vehicle industry. This, at a time when more traditional actively managed funds have been hit with the ‘double-whammy’ of not only tighter margins, but also significant administrative costs, has put huge pressure on a shrinking market.
Some funds have inevitably not performed as well as anticipated against sometimes poorly matched benchmarks. In today’s highly regulated environment, where compliance costs and administrative pressures are high, we see a punitive cost drag with these funds. Added to this, the sheer weight of choice available from the huge number of fund launches and new fund platforms, means that gaining market share, or AUM is a huge challenge – particularly as sub-optimal funds are difficult to market for obvious reasons, leading to even good funds becoming stagnant.
Greg Bonwick and Peter Long, as part of the Linear team, have built a fund strategy and acquisition programme to support these funds. Linear is able to acquire funds and re-engineer them to cut costs and encourage growth. Peter and Greg are also keen to work with manager/owners to strategise how best to optimise the fund to kick start growth and improve its competitive prospects. This can be done in a number of ways, and in our experience each fund is quite different, though we generally start with a combined focus on investment performance. Reducing TER by trimming costs and increasing asset flows, and improving distribution, tends also to be a critical step that is often, if not exactly overlooked, sometimes not given sufficient attention.
Linear’s in-house expertise in the hedge fund, ETF and investment market, plus access to a range of investment strategists, allows the team to build and implement a carefully crafted and targeted new fund strategy. Looking to reduce costs by accessing Linear’s in-house regulatory, management and distribution services, the team can streamline a bespoke or full-service approach to benefit the fund. This can be a great benefit to the current owner and manager/s, as it can be expensive to close a fund down, not just financially, but also in terms of reputation and client base lost.
Linear’s service has three priorities at its core: to encourage asset flow, to improve performance and to reduce costs. Our target market is funds between £10m – £50m, and we are happy to talk to fund administrators, managers or directors who find themselves with a sub-optimal or stagnant fund that isn’t currently reflecting their business ethos and so really should either be sold on, or given a new lease of life.
Linear Investments Limited (“Linear”) which is authorised and regulated in the United Kingdom by the Financial Conduct Authority (“FCA”) (FRN 537389) and incorporated in England and Wales, registered no: 07330725.
This presentation has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. These Presentation Materials are published solely for informational purposes and do not constitute, or form part of, a prospectus relating to the Company, nor do they constitute or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in the Company or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis of or be relied on in any connection with any contract. It should not be considered investment advice and has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient and should not be regarded by recipients as a substitute for professional advice or the exercise of their own judgement..
The information provided is intended only for Professional Clients as defined by the rules established by the FCA and as set out in the FCA Handbook (COBS 3). No other person should rely or act upon any information contained in this presentation. For the avoidance of doubt, this material is not made to or directed at Retail Clients (as defined by the rules established by the FCA and as set out in the FCA Handbook) and should not be distributed to or relied upon by Retail Clients under any circumstances.
This presentation is for distribution only under such circumstances as may be permitted by applicable law. This report may not be reproduced or redistributed, in whole or in part, without the written permission of Linear and Linear accepts no liability whatsoever for the actions of third parties in this respect. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, except with respect to information concerning Linear. Any opinions expressed in this report are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or groups within Linear as a result of using different assumptions and criteria. Linear is under no obligation to update or keep current the information contained herein.