Appian launches long-term equity fund aimed at raising €25m-€30m

Sunday Business Post by Samantha McCaughren - March 14th 2010

Appian Asset Management will launch a new equity fund at the end of the month, which will aim to raise €25 million to €30 million. 

A minimum investment of €50,000 will be required and a return of 8 per cent per annum is expected.  It is higher-risk than Appian's main Value Fund, which invests in a range of assets. 

Appian believes that equities will "become the asset class of choice" over the next five to seven years, given that they are liquid, offer geographic diversification and have low exit costs. 

The new equity fund will focus on companies with low debt, sustainable dividends and will initially focus on the US and Europe.  Sectors in which the fund will invest include the medical device area, healthcare and some utility stocks. 

"We have demand from younger customers who would like more equities", said Kevin Menton, director of Appian, which also hopes to attract a new generation of investors.  

At the moment, most clients are in a pre- and post-retirement stage, but this fund is hoping to appeal to people interested in investing over a longer period.  "This is a long-term fund and , if people can't put their money in for five years, they shouldn't put it in," Menton said. 

John Mattimoe, who is leaving Merrion Capital to join Appian, wil co-manage the fund. 

Menton said that some investors didn't understand the importance of dividends.  "Sometimes, people look at equities and think of the capital gains, but a very important part of the total return is dividends," he said.