Fact sheet: R&M UK Equity Long Term Recovery

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.
UK GROWTH
Sector
UT UK All Companies
Fund type
OEIC
Primary aim
GROWTH
Why Money Observer Rates R&M UK Equity Long Term Recovery

New for 2018. Buys shares at fire-sale prices

Hugh Sergeant, manager of R&M UK Equity Long Term Recovery since it launched in 2008, has an impressive track record over around three decades of investing.

As the name suggests, Sergeant, who is head of UK equities at River & Mercantile, looks for recovery stocks, where good businesses are currently experiencing below-normal profit levels that are depressing their valuations.

To warrant inclusion in the portfolio, a company must have capability to help itself out of this predicament; the manager will add to the fund's holdings at fire-sale prices in volatile times.

This increases the possibility of long term capital gains, as well as a performance profile that deviates significantly from the benchmark FTSE All-Share index.

The investment team has developed an individual philosophy and process called 'PVT': potential, value and timing. It is this quantitative process that underpins all of their investment choices. The portfolio has 230 holdings, which adds a large amount of diversification and reduces stock-specific risk. However, the nature of the fund is to find stocks that have been beaten up by the market and, therefore, sentiment could continue to go against them.

As a result, investors in this fund should expect to encounter a bumpy ride from time to time.<\p>

3 Year Performance
Fund Performance36.8%
Average of Rated Funds Group43.6%
Sector Performance18.9%
Fund information
Fund name
R&M UK Equity Long Term Recovery B
Fund manager company
River & Mercantile Asset Mgmt
Fund type
OEIC
Fund manager
  • Hugh Sergeantsince 17/07/2008
Accolades
Fund objective
The investment objective of the Fund is to achieve capital growth through investing in a portfolio which will primarily consist of UK equities that meet the manager's recovery criteria of a turnaround in company profitability over the longer term.
Benchmark
  • FTSE All Share
Investment style
Growth
Investment method
Shares
Quick stats
1 Year return
12.2%
1 Year rank in sector
25/274
Sector
UT UK All Companies
Yield
1.9%
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.
1.15%
Fund size
£245m (£136m 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.
95
Mid price
1101.03
Top in this sector
Fund name1 Year
Stan Life Inv UKEqUncns21.9%
MI Chelverton UK Equ Grth21%
CFP SDL Free Spirit19.5%
MFM Bowland19.3%
CFP SDLUKBftolgy19%
...more in UT UK All Companies

Performance snapshot

Holdings snapshot

  • UK80%
    Japan2.8%
    USA2.8%
    France2.3%
    China2%
  • Financials27.5%
    Oil & Gas14.5%
    Industrials13.9%
    Basic Materials10.4%
    Consumer Goods8.8%
  • UK Equities80%
    Japanese Equities2.9%
    US Equities2.8%
    French Equities2.3%
    Chinese Equities2.1%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund7%-2%2.5%12.2%36.8%97.5%
Sector6.3%-1.6%0.9%7%18.9%48.8%
Rank within sector117 / 280163 / 27855 / 27725 / 27417 / 25910 / 244
Quartile2nd3rd1st1st1st1st
Calendar performance
 YTD - 20182017201620152014
Fund0.6%17.3%28.1%-0.8%-6%
Sector-1%13.8%11.2%3.7%0.6%
Rank within sector44 / 27753 / 2724 / 262217 / 256237 / 249
Quartile1st1st1st4th4th
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.
4.16
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.
1.01
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.
0.62
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%.
10.55
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.
5.1
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.
0.79
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.
0.76
Price movement
52 week high1156.4
52 week low1000.94
Current bid price-
Current offer price-
Current mid price1101.03
Region
1UK79.99%
2Japan2.79%
3USA2.78%
4France2.31%
5China2.02%
6Greece1.44%
7Italy1.38%
8Money Market1.12%
9Norway0.92%
Industry sector
1Financials27.51%
2Oil & Gas14.55%
3Industrials13.93%
4Basic Materials10.39%
5Consumer Goods8.8%
6Consumer Services8.4%
7Health Care5.48%
8Technology5.29%
9Telecommunications3.24%
Asset type
1UK Equities80.03%
2Japanese Equities2.94%
3US Equities2.75%
4French Equities2.3%
5Chinese Equities2.12%
6Greek Equities1.53%
7Italian Equities1.43%
8Norwegian Equities0.87%
9Brazilian Equities0.78%
Individual holdings
1HSBC HLDGS6.15%
2BP3.81%
3ROYAL DUTCH SHELL3.16%
4STANDARD CHARTERED2.91%
5LLOYDS BANKING GROUP PLC2.76%
6RIO TINTO2.2%
7GLAXOSMITHKLINE2.16%
8BHP BILLITON PLC2.08%
9BARCLAYS1.98%
Management
Fund manager group
River & Mercantile Asset Mgmt
Fund manager company
River & Mercantile Asset Mgmt
Fund type
OEIC
Fund objective
The investment objective of the Fund is to achieve capital growth through investing in a portfolio which will primarily consist of UK equities that meet the manager's recovery criteria of a turnaround in company profitability over the longer term.
Benchmark
  • FTSE All Share
Investment style
Growth
Investment method
Shares
Fund manager
NameSinceBiography
Hugh Sergeant17/07/2008Hugh graduated from the London School of Economics with a degree in Economics. He joined Gartmore in 1987 as a UK equities graduate trainee and moved to Phillips & Drew in 1990, managing UK equities throughout his twelve years there. He became Head of Smaller Companies in 1997, establishing a new team and launching the UBS Smaller Companies Fund. In March 2000 Hugh was promoted to Head of UK Equities at UBS Global Asset Management and Chairman of the UK Equities Committee. He joined Societe Generale Asset Management in 2002 where he was Head of UK Equities, manager of the Growth strategy and co-manager of the Special Opportunities Fund. Hugh was one of the founding members of River and Mercantile Asset Management, joining in August 2006. Hugh is Chief Investment Officer at River and Mercantile Asset Management and manages the UK High Alpha, UK Long Term Recovery, World Recovery and Global High Alpha strategies.
Compliance
IA Recognised, UCITS V Compliant
Domicile
No data available.
Fund for sale in
United Kingdom
R&M UK Equity Long Term Recovery A
Initial charge5.25%
Annual charge1.75%
Min single investment£1,000
Min regular saving£500
Available in ISANo
Ongoing charge (OCF)1.9%
Total expense ratio (TER)1.93%
Bid price-
Offer price-
Mid price299.72
CurrencyGBX
Price updated24/04/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeCNM5
R&M UK Equity Long Term Recovery B
Initial charge5.25%
Annual charge1%
Min single investment£2,500,000
Min regular saving£25,000
Available in ISANo
Ongoing charge (OCF)1.15%
Total expense ratio (TER)1.17%
Bid price-
Offer price-
Mid price1101.03
CurrencyGBX
Price updated24/04/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeF1U2
R&M UK Equity Long Term Recovery Z
Initial charge5.25%
Annual charge-
Min single investment£5,000,000
Min regular saving£50,000
Available in ISANo
Ongoing charge (OCF)0.15%
Total expense ratio (TER)0.18%
Bid price-
Offer price-
Mid price1894.44
CurrencyGBX
Price updated24/04/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeCNM6
Data provided by

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