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

New for 2017. Using a liability-driven investment approach to gain the best of both worlds

This fund uses an approach popular with institutional investors, known as liability-driven investment. It is managed by Alex Soulsby, head of liability-driven investment at F&C Investments.

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.

The objective of this fund is to provide growth through a combination of overseas equity exposure and investment in inflation-linked UK government securities and some cash. It invests predominantly in over five-year index-linked gilts and cash.

The fund is structured such that 25 per cent is invested in high-quality money market instruments and the remaining 75 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 25 per cent held in money market instruments.

The equity overlay is achieved by investing in a basket of overseas equity futures with an asset allocation of 33 per cent US (S&P 500 index futures), 33 per cent Europe (Eurostoxx 50), 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.

3 Year Performance
Fund Performance43.7%
Average of Rated Funds Group46.9%
Sector Performance20.6%
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 19/09/2016
  • 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
12.3%
1 Year rank in sector
10/105
Sector
UT Specialist
Yield
-
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
£531m (£456m 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.
120
Mid price
342.5
Top in this sector
Fund name1 Year
VT Halo Gbl Asn Consumer19.8%
Baring German Gth19.3%
Fidelity EmEur Md Et Af16%
Jupiter Int Financials15.7%
Baring Korea Trust15.4%
...more in UT Specialist

Performance snapshot

Holdings snapshot

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-6.3%-1.2%5.4%12.3%43.7%124.1%
Sector-3.3%-0.4%0.8%2%20.6%23.5%
Rank within sector91 / 11166 / 11115 / 11110 / 10517 / 1012 / 88
Quartile4th3rd1st1st1st1st
Calendar performance
 YTD - 20182017201620152014
Fund-3.9%19.8%26.5%3.3%25.1%
Sector-2%8.2%22.7%-4.5%1.2%
Rank within sector82 / 1118 / 10540 / 10424 / 1007 / 95
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.
7.96
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.
0.83
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.
0.84
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%.
13.61
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.
11.1
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.
0.52
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.
0.34
Price movement
52 week high370.7
52 week low303.6
Current bid price-
Current offer price-
Current mid price342.5
Region
No data available.
Industry sector
1Fixed Interest74.4%
2Money Market25.6%
Asset type
1Global Fixed Interest74.4%
2Money Market25.6%
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 Owadally19/09/2016
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, UCITS IV 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£100,000
Available in ISANo
Ongoing charge (OCF)0.34%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price342.5
CurrencyGBX
Price updated20/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeHVF6
Data provided by

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Financial Express. We believe the data to be correct however you should take care in using any information.

You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.