Raymond James has launched a closed-end mutual fund that tracks the 100 stocks its analysts rate as a "strong buy-1," its top rating, the St. Petersburg Times reports. Raymond James is sub-advisor, while Claymore Advisors is manager of the new fund, the Claymore/Raymond James SB-1 Equity Fund.
The SB-1 Equity Fund, which began trading on the New York Stock Exchange last Friday, has raised $200 million.
"We've been thinking of doing this for a long time, given the performance of our research picks over the years," said Jeff Trocin, head of the company's equity capital markets group. Raymond James decided on a closed-end format so that the fund would not have to honor redemptions and be fully invested, to better track the performance of the recommended stocks.
Although Raymond James' analysts make rating changes sometimes on a daily basis, the fund will only make portfolio changes twice a month.