United Kingdom Absolute Return Fund

An equity fund designed to target positive (‘absolute’) returns in all market conditions with lower volatility than the stock market

ISIN
LU0995140430

NAV
USD 5.46
As of 24/09/2020

1-Day Change
USD -0.01 (-0.11%)
As of 24/09/2020

Morningstar Analyst Rating
Morningstar Analyst Rating				Bronze


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 the Bank of England Base Rate, after the deduction of charges, over any 3 year period.

More

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 60% of the exposure to the long and short positions (in aggregate) will be to companies of any size, in any industry, in the UK. Companies may be incorporated or headquartered in the UK, deriving significant revenue from the UK, or constituents of the FTSE All Share Index. Up to 40% of the long and short exposure may be to non-UK companies.
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 with reference to the Bank of England Base Rate as this forms the basis of the Fund’s performance target and the level above which performance fees may be charged (if applicable). For currency hedged Share Classes, the central bank rate that corresponds with the relevant Share Class currency is used as the basis of the performance comparison and for calculating performance fees. The investment manager has complete discretion to choose investments for the Fund and is not constrained by a benchmark.

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The value of an investment and the income from it can fall as well as rise as a result of taxation arrangements or market and currency fluctuations and you may not get back the amount originally invested.
Potential investors must read the prospectus, and where relevant, the key investor information document before investing.
This website is for promotional purposes and does not qualify as an investment recommendation.

ABOUT THIS FUND

  • Targets absolute returns regardless of market direction with carefully monitored exposure to the stock market
  • Experienced team with time-tested approach through market cycles; supported by the wider Pan-European equities team
  • The fund aims to enhance the overall risk/return characteristics of a balanced portfolio, with a key focus on preserving capital
Past performance is not a guide to future performance. 
 

PORTFOLIO MANAGEMENT

Ben Wallace

Senior Investment Manager

Industry since 1997. Joined Firm in 2011.

Luke Newman

Portfolio Manager

Industry since 2000. 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 30/06/2020
B$ Acc (hedged) UK Base Interest Rate
 
Quarter End
As of 30/06/2020
Jun-2019 - Jun-2020 Jun-2018 - Jun-2019 Jun-2017 - Jun-2018 Jun-2016 - Jun-2017 Jun-2015 - Jun-2016
4.37% -1.04% 2.11% 3.76% -
UK Base Interest Rate 1.22% 2.09% 1.29% 0.58% -
Cumulative & Annualised Performance (%)
As of 31/08/2020
B$ Acc (hedged) (Net) UK Base Interest Rate
 
  Cumulative Annualised
1MO YTD 1YR 3YR 5YR 10YR Since Inception
25/04/2016
B$ Acc (hedged) (Net) -0.15% 1.84% 3.93% 1.90% - - 2.11%
UK Base Interest Rate 0.01% 0.32% 0.85% 1.47% - - 1.21%
FEE INFORMATION
Initial Charge 5.00%
Annual Charge 1.50%
Ongoing Charge
(As of 31/03/2020)
2.11%
Performance Fee 20% (relative to the hurdle rate and high water mark)
Hurdle Rate US Federal Funds Rate

Portfolio

Top Holdings (As of 31/08/2020)
% of Fund
Severn Trent 1.25
Lancashire 1.17
E.ON 1.16
DSV PANALPINA 1.15
Persimmon 0.98
CRH 0.95
Sanofi 0.93
Land Securities Group 0.88
Balfour Beatty 0.85
Analog Devices 0.83

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.
  • The Fund may use derivatives with the aim of reducing risk or managing the portfolio more efficiently. However this introduces 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 may invest up to 40% in shares or derivatives of shares of companies outside the UK
  • The Fund could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Fund.
  • 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.
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