The Munro Fund is administered by Smith and Williamson Fund Administration Ltd. Existing clients of Smith & Williamson can invest directly by phoning 020 7131 4223. New clients should click through to the relevant application form.
The Munro Fund invests directly in shares constituting the bulk of the FTSE 350 index. This means investors effectively become part owners of these companies and are therefore exposed to the risks and rewards that result from the ownership of any asset. As we have explained elsewhere on the site the historical data over the last 100 years demonstrates that equities gives better returns than cash or bonds when held for periods of ten years or more. However, everyone knows that the stock market can be subject to periods of volatility caused by changes in things such as interest rates, commodity prices and any number of political events including war. Sometimes these events are taken badly and can depress share prices, occasionally quite sharply. It is because shareholders are prepared to accept this short term volatility that they can be expected to earn better returns over the longer term. In simple terms higher risks mean higher reward; eventually. As long as potential investors understand, and are prepared for that, then this fund is suitable vehicle for long term capital growth. The next question is then which class of shares to invest in.
A choice of three classes of shares
The Munro Fund is unusual in having three classes of shares: Retail, Institutional and Direct. The underlying investments are the same for all three and the only difference is in the commission paid to advisors. The Retail shares are intended for IFAs and the Institutional shares for private client managers and pay these third parties an annual commission called a trail fee. These two classes also charge an initial, one-off fee called an Initial Commission of up to 5% to new investors. The Direct class of shares is intended for investors who are comfortable about making their own investment decisions without advice from any third parties. Because they are not receiving any advice they are not being charged for it and that class of shares does not pay any trail or initial commission. This makes it the cheapest of the three, but it does mean that investors choosing this option are entirely responsible for their own investment decisions.
Income or Accumulation?
The Munro Fund has three classes of share and each class offers the option of taking income out twice a year from the dividends paid by the underlying investments. Alternatively, that dividend income can be retained in the fund and reinvested for additional capital growth. That is why the share prices for Income and Accumulation shares in each class are different, and will become more different over time.
If you understand all that and still want to invest please click through to the appropriate application form on one of the links below.
Applications from Institutions
Applications from Private Investors
Send the completed form to Smith & Williamson with the relevant documentation to:
SMITH & WILLIAMSON FUND ADMINISTRATION
LIMITED
25 MOORGATE
LONDON
EC2R 6AY
The view the fund prospectus please click on the link below.
Platforms, Wraps and Brokers
The Munro Fund is available on the Transact, Hargreaves Landsdown, Selftrade, Ascentric and Standard Life platforms, also known as Wraps. Platforms and Wraps agree fees with, and are paid by, the investor. On a Fund Supermarket the advisor's fees are paid by the fund manager. Although the fee may be the same there is clear difference in interest. Offshore investors can access the fund through the Lombard Gold List. It is possible to invest in the Direct and Retail classes with Hargreaves Lansdown, even though that class may not be listed. The fund is available through all brokers including execution only ones such Interactive Investor International.
To access Transact click this link
Panels
The Munro Fund is a member of the Cormorant Capital panel in its UK high dividend companies slot under OEIC (Passive)
ISAs, SIPPs and Child Trust Funds (CTFs)
The Munro Fund can be used in Individual Savings Accounts (ISA), Self Invested Personal Pensions (SIPP) and Child Trust Funds (CTF). This must be done through a third party set up to provide this service. Selftrade has a facility for The Munro Fund to be used in a Child Trust Fund.
Monthly Savings
Monthly savings plans can be set up with Interactive Investor International and Hargreaves Lansdown in all share classes.
Taking Advice
The world of financial planning is becoming increasingly complex and it makes sense for many to seek advice. There are a large number of financial advisers in the UK and this page will help you choose one that is qualified to advise you.