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A Dublin registered OEIC offering exposure to a market neutral equity strategy by taking long and short positions primarily in UK equities outside the FTSE 100 Index. The strategy is a mirror version of an existing Cayman listed fund launched in 2003 and is designed to target absolute returns with low levels of volatility. Old Mutual have one the City's largest and most experienced UK small and mid cap team, the resulting portfolio is very much the result of output from across the team.
Targeted Absolute Return funds do not guarantee a positive return and you could get back less than you invested, much like any other investment. 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 shares only|
|Standard initial charge||0.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.00%|
|Annual management charge||1.00%|
|Ongoing charges figure||1.08%|
20% performance over cash returns + 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.
Given the combination of team experience, and the increasingly limited / poor quality of sell side coverage in UK small and mid cap universe we believe the new UCITs version of this strategy should have a high probability of maintaining the track record set by the original Cayman registered fund.
|High yield bonds||0|
Both long and short ideas are the result of collaboration across the OMAM UK small / mid cap team - it is the responsibility of all analysts to come up with long and short ideas from their respective sectors. Long positions focus on positive earnings revisions and re-rating potential, shorts the opposite. Stocks are rarely shorted on the basis of valuation alone. The fund generally has a gross exposure of 200%, evenly balanced between long and short positions. Net exposures having rarely been outside of +/-4% range. The team don’t tend to dynamically manage the gross exposure according to the market backdrop, given that it is virtually market neutral, and expect to generate alpha ideas in most market conditions. Generally there are no pair trades. Historically the fund has tended to display thematic tilts, these are not specifically targeted but tend to evolve. Weightings to themes are monitored to ensure the fund is not too vulnerable to market reversals / factor risks.
|Fund data updated on||21/06/18|
|High yield bonds||0|
No information available.
60 long positions (sized 1-4%) and 40 shorts (0.5-2%) - excluding indices. On average 40% of the short book is represented by stock specific shorts the balance index shorts.
Typically 200% gross exposure, net +/- 5%.
|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.|
Joined Old Mutual in 2007 working originally as an analyst before promotion to deputy fund manager alongside Richard Watts on a segregated small / mid cap mandate in 2010, subsequently promoted to lead in 2012. From 2011 he started to work closely with Ashton Bradbury on UKS. He was formally appointed deputy manager on UKS in Sept 2014, shortly after becoming lead manager following Ashton Bradbury's retirement. Prior to joining OMAM, Service worked on the sell side with ABN AMRO and RBS.
The track record of Tim Service 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|
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.