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The fund targets long-term capital appreciation through investment in a concentrated portfolio of primarily large and mid-cap UK companies. Managers Rachel Reutter and Michael Ulrich first identify long-term economic trends, then picks out “quality” companies – well-managed businesses that deliver reliable growth – that will benefit from them. The managers look at valuations on an absolute rather than relative basis, and will increase the cash weighting if markets are expensive. Though income is not an explicit target, the fund typically has an attractive yield.
|Dividends paid||28 Feb|
|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.
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.
This is a core option for investors seeking predominantly large cap UK equity exposure. The strategy 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 the fund has still outperformed over the market cycle. Demanding selection criteria mean only strongest ideas are included in the portfolio, which will be focused as a result. The fund typically avoids financial and mining companies.
|High yield bonds||0|
Following a recent retirement of the long standing lead manager John Wood, who has been running the fund since 2005, taking over lead management responsibilities are the alternate managers, Rachel Reutter and Michael Ulrich. With both Reutter and Ulrich having assumed their management responsibilities in 2015, the product continues to adhere its original philosophy and process and continues to focus primarily on FTSE 100 and FTSE 250 stocks. The first pillar of the process is to identify a number of long term macro-economic and industrial themes - these tend to be fairly stable over time. Following that, the focus is on identifying 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, management and appropriate levels of balance sheet leverage. 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 - managers look for companies that can provide a strong absolute upside on a two to three year view. Focus is primarily on sustainable rather than one-off levels of three metrics in particular: return on equity, free cash flow and sales growth.
|Fund data updated on||21/06/18|
|High yield bonds||0|
As at: 30/04/2018
6.95% Royal Dutch Shell
4.0696%Vodafone Group Plc
3.4724%Land Securities Group Plc Ord 10 2/3p
|Oil & Gas||12%|
20-40 stocks. Higher conviction stocks are weighted at 3-5%, with new positions starting at 1.5-2%.
Up to 10% can be invested in overseas companies. Up to 33% 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|
|13/14||14/15||15/16||16/17||17/18||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.|
Michael Ulrich, Senior Fund Manager Michael co-manages the JOHCM UK Opportunities Fund alongside Rachel Reutter. Michael has been working on the UK Opportunities strategy since he joined JOHCM in 2015. Prior to joining JOHCM, Michael spent nine years at F&C where he built a strong track record as lead manager on a number of concentrated UK Equity portfolios. Before that he worked as an analyst and fund manager at Deutsche Asset Management. Michael holds an BA in Law and Politics and is a CFA Charterholder. Rachel Reutter, Senior Fund Manager Rachel co-manages the JOHCM UK Opportunities Fund alongside Michael Ulrich. Rachel has been working on the UK Opportunities strategy since she joined JOHCM in 2012. Prior to joining JOHCM, Rachel worked for Goldman Sachs where she was a Lead Sector Analyst in the Global Investment Research Division. Before that she worked as an Analyst at Oriel Securities and in Global Banking and Markets at RBS. Rachel holds an MA in Geography from The University of Oxford and is a CFA Charterholder.
The track record of Rachel Reutter / Michael Ulrich in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.
|Periods of worst performance|
|Absolute||-5% (October 2017 - February 2018)|
|Relative||-5% (October 2017 - May 2018)|
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.