The Discovery fund invests in a diversified portfolio of medium
sized European and US companies to achieve long-term capital
growth. The fund objective is to identify quality companies that
have established profitability early in their life cycle and to stick
with them through their core growth phase. This is typically a
highly rewarding holding period in terms of share price
performance.
The fund invests in companies with some of the following
characteristics:
- Medium sized businesses which are established and profitable.
- Niche businesses with strong growth prospects.
- Under-researched companies – the ‘Neglect Effect’.
- Takeover plays.
The Discovery fund typically includes around 40-50 stocks to
reduce stock specific risk. These stocks are also diversified across
a wide geographic area and numerous different sectors. The long
term nature of the investment style means that the fund has
adopted a buy-and-hold strategy, and therefore there is a limited
level of stock turnover in the portfolio.
Importantly, the Discovery fund offers investors exposure to a
basket of stocks frequently overlooked by the larger institutional
fund managers. Compared to their larger cap counterparts, mid
cap companies are generally considered to be more dynamic,
offering higher growth potential. Management in these companies
tends to be more entrepreneurial, flexible and responsive to
change. Mid cap companies offer pure theme plays and tend to
be more unique investments, and due to their size they are more
likely takeover candidates.
Suitability
The fund is suitable for long term investors who can accept a higher
degree of risk in return for higher potential return. Mid cap stocks
tend to be more illiquid and volatile than their larger cap counterparts
and this therefore puts the fund in a medium to high risk category.
Provider: New Ireland
- Personal Investments (Smart Funds/Select Savings Plan)
- Personal/Executive Pensions
- Personal Retirement Plan
- Executive Retirement Plan
- ARFs and AMRFs / Self Administered Pensions
- Personal Retirement Bond
- Non Standard PRSAs
