For financial professionals in the UK

European Absolute Return Fund

ISIN
GB00B3CPX151

NAV
GBP 199.80p
As of 08/12/21

1-Day Change
GBP 0.50p (0.25%)
As of 08/12/21

Morningstar Rating


Morningstar ratings are based on the representative share class of this fund and are dated to the last month-end upon availability from Morningstar.

Overview

INVESTMENT OBJECTIVE

The Fund aims to provide a positive (absolute) return, regardless of market conditions, over any 12 month period. A positive return is not guaranteed over this or any other time period, and particularly over the shorter term the Fund may experience periods of negative returns.
Consequently your capital is at risk.
Performance target: To outperform SONIA +1%, after the deduction of charges, over any 3 year period.

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The Fund invests in shares and makes extensive use of derivatives (complex financial instruments) to take both ‘long’ and ‘short’ positions in companies the investment manager believes will either rise in value (long positions) or fall in value (short positions) meaning that the Fund may benefit from
either scenario.
The Fund will hold a significant proportion of its assets in cash and money market instruments as a result of holding derivatives and for when the investment manager wishes to take a defensive stance. Conversely, the Fund may also employ ‘leverage’ (so that the Fund can invest a greater amount than its actual value) when the investment manager
has greater confidence in the opportunities available.
Typically, at least 80% of the exposure to the long and short positions (in aggregate) will be to companies of any size, in any industry, in Europe (including UK). Companies may be located or do most of their business in this region. The balance of the long and short exposure may be to
companies outside this region.
The investment manager may also use derivatives (complex financial instruments) to reduce risk or to manage the Fund more efficiently.
The Fund is actively managed and makes reference to SONIA as this forms the basis of the Fund's performance target and the calculation of performance fees (if applicable).The investment manager has complete discretion to choose investments for the Fund and is not constrained
by a benchmark.

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Please note: the fund may invest up to 20% in shares or derivatives of shares of companies outside Europe.

This website is for financial promotion purposes and is not investment advice.

RATINGS AND AWARDS

FE fundinfo Ratings based on European Absolute Return Fund I Acc shares only. Availability of  this share class may be limited by law in certain jurisdictions. Performance records are detailed on the specific KIID, fees and charges may vary and further information can be found in the fund’s prospectus and KIID which must be reviewed before investing. Please consult your local sales representative if you have any further queries.

PORTFOLIO MANAGEMENT

Robert Schramm-Fuchs

Portfolio Manager

Industry since 2005. Joined Firm in 2014.

John Bennett

Director of European Equities | Portfolio Manager

Industry since 1987. Joined Firm in 2011.

Performance

Past performance is not a guide to future performance. All performance data includes both income and capital gains or losses and reflects the deduction of any ongoing charges or other fund expenses.
Discrete Performance (%)
As of 30/09/21
A Acc (Net) SONIA+1%
 
Quarter End
As of 30/09/21
Sep-2020 - Sep-2021 Sep-2019 - Sep-2020 Sep-2018 - Sep-2019 Sep-2017 - Sep-2018 Sep-2016 - Sep-2017
A Acc (Net) 12.26 10.86 -0.56 -1.10 7.48
SONIA+1% 0.42 0.40 0.75 0.52 0.25

Index Description

SONIA stands for Sterling Overnight Index Average. SONIA reflects the average of the interest rates that banks pay to borrow sterling overnight from other financial institutions. SONIA +1% is the basis for the Fund’s performance target and provides a useful comparison against which the Fund's performance can be assessed over time.

Cumulative & Annualised Performance (%)
As of 30/11/21
A Acc (Net) SONIA+1%
 
  Cumulative Annualised
1MO YTD 1YR 3YR 5YR 10YR Since Inception
29/01/09
A Acc (Net) -2.81 7.95 8.18 7.97 5.20 6.15 5.42
SONIA+1% 0.09 0.57 0.58 0.54 0.49 0.49 0.49

Index Description

SONIA stands for Sterling Overnight Index Average. SONIA reflects the average of the interest rates that banks pay to borrow sterling overnight from other financial institutions. SONIA +1% is the basis for the Fund’s performance target and provides a useful comparison against which the Fund's performance can be assessed over time.

CALENDAR YEAR RETURNS (%)
A Acc (Net) SONIA+1%
2016 2017 2018 2019 2020
A Acc (Net) -1.58 4.62 -5.10 10.61 6.73
SONIA+1% 0.40 0.29 0.60 0.75 0.23

Index Description

SONIA stands for Sterling Overnight Index Average. SONIA reflects the average of the interest rates that banks pay to borrow sterling overnight from other financial institutions. SONIA +1% is the basis for the Fund’s performance target and provides a useful comparison against which the Fund's performance can be assessed over time.

FEE INFORMATION
Initial Charge 5.00%
Annual Charge 1.50%
Ongoing Charge
(As of 31/05/21)
1.79%
Performance Fee 20% (with high water mark)

Portfolio

Top Holdings (As of 31/10/21)
% OF FUND
HUGO BOSS 3.02
Terna - Rete Elettrica Nazionale 2.96
Pandora 2.82
Lonza Group 2.78
FinecoBank Banca Fineco 2.30
Danone 2.22
Vestas Wind Systems 2.05
JD Sports Fashion 2.03
RELX 2.00
Severn Trent 2.00

Documents

  • ​The value of the Funds and the income from them is not guaranteed and may fall as well as rise. You may get back less than you originally invested.
  • ​Past performance is not a guide to future performance.
  • Third party data is believed to be reliable, but its completeness and accuracy is not guaranteed.
  • Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
  • If a Fund has a high exposure to a particular country or geographical region it carries a higher level of risk than a Fund which is more broadly diversified.
  • The Fund may use derivatives towards the aim of achieving its investment objective. This can result in 'leverage', which can magnify an investment outcome and gains or losses to the Fund may be greater than the cost of the derivative. Derivatives also introduce other risks, in particular, that a derivative counterparty may not meet its contractual obligations.
  • If the Fund holds assets in currencies other than the base currency of the Fund or you invest in a share class of a different currency to the Fund (unless 'hedged'), the value of your investment may be impacted by changes in exchange rates.
  • Securities within the Fund could become hard to value or to sell at a desired time and price, especially in extreme market conditions when asset prices may be falling, increasing the risk of investment losses.
  • The Fund involves a high level of buying and selling activity and as such will incur a higher level of transaction costs than a fund that trades less frequently. These transaction costs are in addition to the Fund's Ongoing Charges.
  • The Fund could lose money if a counterparty with which the Fund trades becomes unwilling or unable to meet its obligations, or as a result of failure or delay in operational processes or the failure of a third party provider.
  • Funds incur costs as a necessary part of buying and selling the underlying investments, these are otherwise known as portfolio transaction costs, and include charges such as broker commission and Stamp Duty.
  • For detailed product information including the risks associated with investing please read the relevant Prospectus or Annual Report.
  • Before investing in any of our funds you should satisfy yourself as to the suitability and the risks involved.
  • Summary of Investors rights