For financial professionals in Luxembourg

Absolute Return Fund

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

ISIN
LU0200083342

NAV
GBP 3.25
As of 20/10/2021

1-Day Change
GBP -0.00 (-0.04%)
As of 20/10/2021

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 listed on the London Stock Exchange. 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.

Less

The value of an investment and the income from it can fall as well as rise as a result of 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

Portfolio 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 30/09/2021
A2 GBP (Net) Bank of England Base Rate
 
Quarter End
As of 30/09/2021
Sep-2020 - Sep-2021 Sep-2019 - Sep-2020 Sep-2018 - Sep-2019 Sep-2017 - Sep-2018 Sep-2016 - Sep-2017
A2 GBP (Net) 3.86 2.73 -0.65 0.37 1.94
Bank of England Base Rate 0.10 0.40 0.75 0.52 0.25
Cumulative & Annualised Performance (%)
As of 30/09/2021
A2 GBP (Net) Bank of England Base Rate
 
  Cumulative Annualised
1MO YTD 1YR 3YR 5YR 10YR Since Inception
31/03/2010
A2 GBP (Net) -0.90 3.14 3.86 1.96 1.64 4.12 3.77
Bank of England Base Rate 0.01 0.08 0.10 0.41 0.40 0.45 0.45
CALENDAR YEAR RETURNS (%)
A2 GBP (Net) Bank of England Base Rate
2016 2017 2018 2019 2020
A2 GBP (Net) 1.22 2.86 -3.28 3.55 2.23
Bank of England Base Rate 0.40 0.29 0.60 0.75 0.23
FEE INFORMATION
Initial Charge 5.00%
Annual Charge 1.50%
Ongoing Charge
(As of 31/03/2021)
2.76%
Performance Fee 20% (relative to the hurdle rate and high water mark)
Hurdle Rate Bank of England Base Rate

Portfolio

Top Holdings (As of 30/09/2021)
% of Fund
Legal & General Group 2.07
Aviva 1.35
Land Securities Group 1.31
Analog Devices 1.26
RELX 1.21
CRH 1.16
Sherborne Investors Guernsey GBP 1.14
Alphabet 1.09
Lancashire 1.02
Trian Investors 1 Ltd GBP 1.00

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.
  • When the Fund, or a hedged share/unit class, seeks to mitigate exchange rate movements of a currency relative to the base currency, the hedging strategy itself may create a positive or negative impact to the value of the Fund due to differences in short-term interest rates between the currencies.
  • 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 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.
  • Information on compliance with EU sustainable related disclosures can be found here.
  • 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 Investor rights