Legg Mason Equity Concentrated Closed-end Investment Fund – a new investment product launched on the 4.06. by Legg Mason Poland.
We are pleased to inform that Legg Mason Poland has just introduced an investment product which is unique in the Polish market - Legg Mason Equity Concentrated Closed-end Investment Fund (Legg Mason Akcji Skoncentrowany Fundusz Inwestycyjny Zamkniety). Subscription period of investment certificates started 04.06.2009.
The idea behind the product employs the conviction held by Legg Mason Poland team that it is more profitable to invest capital in a small number of companies that have been thoroughly analyzed rather than diversifying funds among many, sometimes random investments without obtaining in-depth information on them. Based on its long-standing experience and operations in the capital market, Legg Mason Poland considers value investing, stock-picking and concentrated management style as a way to beat the market (as measured by the broad Warsaw Stock Exchange Index - WIG) over 5-year periods.
The average number of names held by the Legg Mason Equity Concentrated Strategy Fund should range from 10 to 20. Top 5 holdings may account for as much as 75% of the fund’s net asset value. The composition of the WIG index will not impact the composition of the fund’s portfolio. A selective investment approach makes it possible to analyze selected companies more thoroughly and pick the names that offer the highest probability of sustained outperformance in operating efficiency terms. This is an approach radically different from that followed by competitive traditional benchmark-driven equity funds, where the shares of individual holdings depend on their weights in the stock exchange index, and the number of names held in the portfolio is often as high as 80 to 100.
New product is an offer targeted at those customers who, irrespective of current market sentiment, seek solutions that enable medium- and long-term price opportunities to be exploited to the maximum extent possible by taking significant positions in the equity market and closing them when their fundamental value no longer justifies holding them. The fund is also one of the very few possibilities on the market for those clients who wish to avoid unnecessary diversification and look for solutions comparable to individual investors’ concentrated portfolios.
The objective of Legg Mason Poland is to develop offers which are not just marketing tools, but potential sources of real added value for our customers over a reasonable time horizon. One of such offers is the Legg Mason Equity Concentrated Fund.
| Subscription period for A series investment certificates | 4–30 June 2009 |
| Certificate face value | PLN 1,000 |
| Minimum investment | PLN 50,000 |
Subscription for A series investment certificates of the Fund is conducted by:
- Banks: BRE Private Banking & Wealth Management, Citi, Deutsche Bank PBC, Nordea Bank
- Brokerage houses: Deutsche Bank Securities, Centralny Dom Maklerski PEKAO (connected with Unicredito).
Subscription terms and conditions, risk factors and detailed information concerning the Legg Mason Equity Concentrated Fund can be found in the fund’s articles of association and the prospectus for the fund’s investment certificates at www.leggmason.pl (available in Polish only).