Asked about the universe of companies that qualify, Hutchinson said Unicorn believes there are around 600 to 700 firms available, but only around 150 to 200 get through the firm’s own investment screens that focuses on established, cash generative companies. Hutchinson added, however, that the universe of stocks will also be independently verified as eligible by specialist tax consultancy Robertson Hare.
From this investible universe, Unicorn will construct a portfolio of between 25 and 40 stocks. Asked whether or not the qualifying criteria have skewed the universe in any way from a sectoral point of view, Hutchinson said that the spread of companies was fairly even.
Ahead of launch, the growth model portfolio had around 20% in consumer stocks, 10% in support services and 18% in technology firms, Hutchinson said, adding that the stocks are all selected as a result of bottom up research.
In terms of the mechanics, WM will pool the funds of investors choosing to use the service until they reach £1m after which Unicorn will spread that money evenly across the various investments within the portfolio. The Growth portfolio will re-invest any dividends received to maximise capital growth while the Income portfolio will pay out dividends quarterly.
According to Hutchinson, there will be a great deal of cross over between the two portfolios, but the Income one will be slightly skewed to the more liquid side of the market in order to ensure that positions can be exited easily to maintain the smooth payment of dividends if need be.
Fees
Minimum Investment
Income Portfolio – £50,000
Growth Portfolio – £25,000
Initial Charge (advised)
2.0% plus VAT
Initial Charge (non-advised)
4.5% plus VAT (Inc. 2.5% advisor commission)
Annual Management Charge (advised)
1.5% plus VAT
Annual Management Charge (non-advised)
2.0% plus VAT (Inc. 0.5% advisor commission)
Dealing Fee
Up to 0.5% plus £5 per stock settlement fee
Exit Fee (not payable on death)
1.0%
