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A moderately directional, US long / short equity strategy. The fund benefits from a dedicated manager and a stable and well-resourced team. The manager previously ran an identical fund with the same team at Threadneedle. The performance profile to date has been notable by its lack of volatility - partly a function of security diversification, modest style biases and overall low net exposure. Typical net exposure is about +15%, targeting a volatility of 4-8%. Targeted Absolute Return funds do not guarantee a positive return and you could get back less than you invested. Additionally, the underlying assets of these funds generally use complex hedging techniques through the use of derivative products.
|Sector||Targeted Absolute Return|
|Dividends paid||Acc units only|
|Standard initial charge||1.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.00%|
|Annual management charge||0.75%|
|Ongoing charges figure||0.86%|
Performance fee: 20% over 3m Libor, subject to a high-water mark
Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.
A more conservatively structured long short equity fund characterised by more modest gross and net exposures. The fund has been notable by its low volatility and drawdown characteristics. We would expect this fund to offer stronger protection qualities, although this may come at the expense of some upside participation. The fund is backed by a stable team who previously worked together at Threadneedle.
|High yield bonds||0|
The security selection process focuses on identifying undiscounted fundamentals with the aim of capturing periods of improving fundamentals and re-rating for long positions (opposite for shorts). As part of this the team will also seek to identify the main variables that drive a company’s valuation with the aim of using short term earnings forecasts to build upside / downside price targets. The manager will also consider the macro backdrop with a view to developing an understanding of the position in economic cycle and secular trends. The team are very aware of the impact of investment style bias and never seek to be overly concentrated on one factor. The investment universe is predominantly large and medium sized US equities. Up to 20% may be non-US may be included usually as an extension of a sector / thematic opportunity that has been identified.
|Fund data updated on||15/02/19|
|High yield bonds||0|
As at: 28/09/2018
2.11% Microsoft Corp
1.8876%Norfolk Southern Corp
1.6906%Unitedhealth Group Inc
1.5041%Berkshire Hathaway Inc
|Healthcare & Medical Products||3%|
Number of positions: 40-70 long, 50-95 short. +/- 20% in any one sector (at a net level).Typical net exposure:15%, gross exposure:130%. Expected volatility:4-8%.
No information available.
|Average monthly relative returns||Bestinvest MRI|
|14/15||15/16||16/17||17/18||18/19||3 years||5 years||Career||3 years||5 years||Career|
|Performance figures are based on the average of monthly percentage returns relative to the benchmark index.|
Moore began his career at First State Fund Managers in 1997, covering North American consumer cyclical companies before becoming an analyst then progressing to portfolio manager in 2001. In 2002, he joined the US team at Threadneedle, initially managing the Allied Dunbar Insurance fund. He has since also taken on several institutional funds. He holds a BComm and a BA from the University of Queensland, Australia. In 2000 he received his Investment Management Certificate. Moore is an associate of the Securities Institute of Australia (SIA).
Stephen Moore has 10.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.2%. During the worst period of relative performance (from October 2009 - August 2010) there was a decline of 9% relative to the index. The worst absolute loss has been 18%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 97%.
|Periods of worst performance|
|Absolute||-18% (April 2010 - August 2010)|
|Relative||-9% (October 2009 - August 2010)|
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.