Fact sheet: F&C Overseas Equity Linked UK Inflation

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
SPECIALIST
Sector
UT Specialist
Fund type
OEIC
Primary aim
No data available.
Why Money Observer Rates F&C Overseas Equity Linked UK Inflation

Rated Fund 2017-2018. Uses a liability-driven investment approach.

This fund uses an approach popular with institutional investors, known as liability-driven investment. The aim of the approach is to enable investors to hedge their liabilities, which would normally involve investing wholly in government and corporate bonds, while still providing exposure to equity market returns.This fund is managed by Alex Soulsby, head of liability-driven investment at BMO Global Asset Management. The objective of the fund is to provide growth through a combination of overseas equity exposure and an investment in inflation-linked UK government bonds and cash. The index-linked gilts exposure is predominantly to bonds with terms of five years or more.The fund is structured such that 30 per cent is held in cash or high-quality money market instruments and the remaining 70 per cent is invested in inflation-linked gilts. In addition, it aims to provide 100 per cent exposure to equity returns using equity futures. Any margin calls on the equity futures arising as a result of underlying equity market movements are funded from the cash or near-cash holdings.The equity overlay is achieved by investing in a well-diversified basket of overseas equity futures with an asset allocation of 34 per cent Europe (Eurostoxx 50), 33 per cent US (S&P 500 index futures), 17 per cent Japan (Topix), 8 per cent Hong Kong (Hang Seng) and 8 per cent Australia (ASX 200).The government bond portfolio is also managed on a passive basis to match an index of inflation-linked gilts of over five years to maturity. The fund is rebalanced monthly to return the asset allocation to the target weights.<\p>

3 Year Performance
Fund Performance39%
Average of Rated Funds Group50.4%
Sector Performance20.7%
Fund information
Fund name
F&C Overseas Equity Linked UK Inflation 3 Acc
Fund manager company
F&C (BMO Global Asset Manageme
Fund type
OEIC
Fund managers
  • Nabil Owadallysince 20/09/2016
  • Chris Higmansince 07/12/2009
Accolades
Fund objective
The objective is to provide growth. The Manager combines overseas equity exposure with investment in inflation-linked securities issued by the UK government with some cash. The Fund invests predominantly in over-5 year index linked gilts and deposits, cash and/or near cash investments.
Benchmark
No data available.
Investment style
Flexible
Investment method
None
Quick stats
1 Year return
8.2%
1 Year rank in sector
37/108
Sector
UT Specialist
Yield
0.1%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.34%
Fund size
£463m (£529m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
112
Mid price
352.7
Top in this sector
Fund name1 Year
JPM Natural Resources26.5%
Old Mutual JPM Nat Res26.3%
Artemis Global Energy23.4%
Jupiter Financial Opps22.2%
BlackRock Nat Res Gth & Inc20.9%
...more in UT Specialist

Performance snapshot

Holdings snapshot

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund2%3.4%2.2%8.2%39%101.3%
Sector3%2.3%1.9%5.2%20.7%25.4%
Rank within sector56 / 11143 / 11248 / 11137 / 10820 / 1023 / 90
Quartile3rd2nd2nd2nd1st1st
Calendar performance
 YTD - 20182017201620152014
Fund-1.1%19.8%26.5%3.3%25.1%
Sector0.2%8.2%22.7%-4.5%1.2%
Rank within sector77 / 1128 / 10440 / 10324 / 997 / 94
Quartile3rd1st2nd1st1st
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
5.28
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.84
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.53
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
13.93
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
11.2
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.32
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.35
Price movement
52 week high370.7
52 week low313.5
Current bid price-
Current offer price-
Current mid price352.7
Region
No data available.
Industry sector
1Fixed Interest76.6%
2Money Market23.4%
Asset type
1Global Fixed Interest76.6%
2Money Market23.4%
Individual holdings
No data available.
Management
Fund manager group
F&C
Fund manager company
F&C (BMO Global Asset Manageme
Fund type
OEIC
Fund objective
The objective is to provide growth. The Manager combines overseas equity exposure with investment in inflation-linked securities issued by the UK government with some cash. The Fund invests predominantly in over-5 year index linked gilts and deposits, cash and/or near cash investments.
Benchmark
No data available.
Investment style
Flexible
Investment method
None
Fund managers
NameSinceBiography
Nabil Owadally20/09/2016
Chris Higman07/12/2009Christopher Higman is a Derivatives Fund Manager in the Investment Solutions team. Chris joined F&C in September 2006 with an MPhys degree in Theoretical Physics from Exeter University and is a CFA Charterholder.
Compliance
IA Recognised, Reporting Fund Status, UCITS V Compliant
Domicile
No data available.
Fund for sale in
United Kingdom
F&C Overseas Equity Linked UK Inflation 3 Acc
Initial charge-
Annual charge0.3%
Min single investment£500,000
Min regular saving£500,000
Available in ISANo
Ongoing charge (OCF)0.34%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price352.7
CurrencyGBX
Price updated18/05/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeHVF6
Data provided by

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