Focus bows out of boutique business
Focus Investment Managementfounder Stephen O’Brien has confirmed the boutique funds management house will cease business after only 18 months in operation.
The group was set up in March last year by O’Brien and business partners Jim Reid, Stephen Thompson and Paul Khoury. Reid and Thompson were both previously with Equitilink, as fund manager director and equities director respectively, while Khoury was previously associate director atHopkins Partners Funds Management. Prior to starting the group, O’Brien was business development director atSchroders.
According to the group, the reason for its closure is due to industry concerns over the size of the manager’s team as well as possible issue with the capital backing of the group.
It states in a press release that while Focus did have some success since launching, it was unlikely that funds under management going ahead would be sufficient to keep the business open.
Focus offered two types of investment products the Focus 20 and Focus 40 funds which had stock holdings at a maximum of 20 and 40 per cent with estimated performance of three to five per cent over benchmark.
In actual fact the funds returned in excess of five per cent with the Focus 20 returning 5.55 per cent and the Focus 40 returning 5.13 per cent from June 1 last year to May 31 this year.
The stock selection was based on active selection from the S&P/ASX 200 which created the buy list for the two funds.
Recommended for you
Far too few wealth managers are capitalising on the opportunity presented by disruptive technology to deliver personalised investment solutions to the mass affluent demographic, according to PwC.
With over half of advisers using managed accounts, HUB24’s head of managed portfolios has unpacked the benefits driving their usage and how they can be leveraged by advice practices.
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
ASX-listed platforms HUB24, Netwealth, and Praemium have used their AGMs to detail how they are using artificial intelligence to improve their processes and the innovative opportunities it presents.
