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JO HAMBRO CM UK OPPORTUNITIES Y

JO HAMBRO CM UK OPPORTUNITIES Y - Overview

Overview of JO HAMBRO CM UK OPPORTUNITIES Y Buy in ISA Buy in Investment Account

The fund targets long-term capital appreciation through investment in a concentrated portfolio of primarily large and mid-cap UK companies. Manager John Wood first identifies long-term economic trends, then picks out “quality” companies – well-managed businesses that deliver reliable growth – that will benefit from them. He looks at valuations on an absolute rather than relative basis, and will increase his cash weighting if markets are expensive. Though income is not an explicit target, the fund typically has an attractive yield.

  • Standard Initial Charge 0.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector UK All Companies
Structure OEIC
Launched January, 2013
Size £1,774m
Yield 2.8%
Charging basis Capital
Dividends paid 28 Feb

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.63%
Ongoing charges figure 0.70%

There is a performance fee of 15% of any outperformance of the benchmark (FTSE All-Share). The fee accrues on a daily basis but is reversed if there is subsequent underperformance, and it is subject to a high water mark.

Risks

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 Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

This is a core option for investors seeking large/mid cap UK equity exposure. Wood has a cautious approach, favouring stable, consistent companies and using cash where necessary which typically leads to low volatility compared to the UK stockmarket and an element of protection in falling markets. However, strong fundamental stockpicking skills mean he has still outperformed over the market cycle. His demanding selection criteria mean only his strongest ideas are included in the portfolio, which will be focused as a result. He typically avoids financial and mining companies.

Portfolio

Allocation Proportion(%)
Equity 84
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 16
Allocation Proportion(%)
UK 100
Europe 0
North America 0
Japan 0
Pacific 0
Emerging Markets 0
Allocation Proportion(%)
Large Caps 87
Mid Caps 13
Small Caps 0
View all performance data for this fund

Investment process

Manager John Wood invests primarily in FTSE 100 and FTSE 250 stocks. He first identifies a number of long term macro-economic and industrial themes - these tend to be fairly stable over time. He then searches for high quality businesses that will benefit from these themes, though ideas not linked to the themes may also be included in the portfolio. Quality companies are defined as those able to generate predictable and growing cash flows. Quality assessment involves looking at such factors as pricing power, volumes and management. Such is the discipline of the process that typically only about 60-70 stocks fit these selection criteria. These are then subjected to valuation control, which emphasises absolute rather than relative value - Wood looks for companies that can provide a strong absolute upside on a two to three year view. He focuses on sustainable rather than one-off levels of three metrics in particular: return on equity, free cash flow and sales growth.

Live feed

Bid price(inc) 135.50p
Accum units 151.50p
Fund commentary 11/12/15
Fund data updated on 27/02/17

Asset allocation

Allocation Proportion(%)
Equity 84
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 16

Equity Geographic

Allocation Proportion(%)
UK 100
Europe 0
North America 0
Japan 0
Pacific 0
Emerging Markets 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 87
Mid Caps 13
Small Caps 0

Top 10 holdings

As at: 31/12/2016
5.773%Royal Dutch Shell
5.4004%National Grid
4.5833%Bp
4.4495%Sse Plc
4.0756%Relx Plc
3.6001%Compass Group
3.5571%Diageo
3.3421%Centrica Plc
3.1231%Next
2.8247%Unilever
Source: Trustnet

Sector breakdown

Money Market 28%
Industrials 17%
Utilities 14%
Consumer Services 13%
Consumer Goods 11%
Oil & Gas 10%
Health Care 4%
Basic Materials 1%

Portfolio details

25-40 stocks. Higher conviction stocks are weighted at 3-5%, with new positions starting at 1.5-2%.

Constraints

Up to 10% can be invested in overseas companies. Up to 20% may be held in cash.
The portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.

Average monthly relative returns Bestinvest MRI
12/13 13/14 14/15 15/16 16/17   3 years 5 years Career 3 years 5 years Career
0.22% 0.17% 0.35% 0.49% -0.32%   0.17% 0.18% 0.24% 88.10% 93.90% 99.80%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

John Wood

Manager. Born in 1965, Wood began his career in 1986 with Ernst & Young where he qualified as a chartered accountant and became an audit supervisor. In 1993 he moved to the National & Provincial Building Society as a property and procurement accountant, before joining Newton Investment Management in 1995 as an analyst. He ultimately became a director on Newton's UK equities team, managing their UK Opportunities and Income funds as well as being responsible for constructing model portfolios for UK equities. In 2005 he moved to JO Hambro Capital Management where he is a senior fund manager. Wood has a degree in Economics from Warwick University and is a member of UKSIP.

Track record

John Wood has 14.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.24%. During the worst period of relative performance (from January 2009 - February 2011) there was a decline of 14% relative to the index. The worst absolute loss has been 28%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance
Absolute -28% (October 2007 - March 2009)
Relative -14% (January 2009 - February 2011)

Other funds managed

  Start Date
JO HAMBRO CM UK OPPORTUNITIES BNov 2005

Sector record since February 2002 (15 yrs)




About the MRI

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.

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