Fact sheet: MFM Slater Income

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 EQUITY INCOME
Sector
UT UK Equity Income
Fund type
OEIC
Primary aim
GROWTH & INCOME
Why Money Observer Rates MFM Slater Income

Rated Fund 2016-2017. A three-pronged approach to a balanced portfolio

This fund won Money Observer's Best Smaller UK Equity Income Fund award in 2015 and 2016. It is still a relatively new fund, launched in 2011, and a tiddler by industry standards at just over £100 million in size. It is run by a team consisting of Mark Slater, Barrie Newton, Ralph Baber and Nigel Milton.

It boasts one of the highest yields among its peers at 4.8 per cent, achieved through the managers investing across the market spectrum. The managers like all the companies in which they invest to make a meaningful contribution to the fund's yield. Income is paid quarterly.

They divide the portfolio into three sections. One is made up of growth stocks that also have a good yield. A second consists of cyclical companies that are not growing their earnings rapidly, but where there is potential for improvement in a stronger economy.

This section may include companies recovering from short-term difficulties. The third category is 'dividend stalwarts' which offer slower but reliable earnings growth with sustainable dividends.

The managers believe this combination gives them a balanced portfolio and a solid spread of robust, reasonably priced businesses of different sizes ranging from FTSE 100 companies down to much smaller businesses.

However, they do not believe in excessive diversification. Portfolios are weighted towards the top 15 or so holdings, where each individual holding may be as large as 5 per cent of the portfolio. They prefer to build a concentrated portfolio of their best ideas.

3 Year Performance
Fund Performance22%
Average of Rated Funds Group22.3%
Sector Performance16%
Fund information
Fund name
Slater Income P Inc
Fund manager company
Slater Investments
Fund type
OEIC
Fund managers
  • Barrie Newtonsince 18/09/2011
  • Nigel Miltonsince 02/12/2013
  • Mark Slatersince 18/09/2011
  • Ralph Babersince 18/09/2011
Accolades
Winner - UK Equity Income - Best Smaller Fund
Fund objective
To produce an attractive and increasing level of income in addition to seeking long term capital growth from a portfolio of investments. The investment team actively manages the portfolio. They may invest in ordinary, preference and convertible shares.
Benchmark
  • IA OE UK Equity Income
Investment style
Growth
Investment method
Shares
Quick stats
1 Year return
6.1%
1 Year rank in sector
18/94
Sector
UT UK Equity Income
Yield
4.3%
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.
0.8%
Fund size
£130m (£116m 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.
68
Mid price
165.98
Top in this sector
Fund name1 Year
Man GLG UK Income15.7%
MI Chelverton UK Eq Inc13.1%
LF Miton UK Multi Cap Inc10.4%
MI DowningMthlyInc10.3%
Courtiers UK Equity Income9.8%
...more in UT UK Equity Income

Performance snapshot

Holdings snapshot

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-3.9%1.4%1.3%6.1%22%72.4%
Sector-6.2%-1.8%-1.7%3.3%16%45.3%
Rank within sector6 / 997 / 9815 / 9718 / 9414 / 845 / 78
Quartile1st1st1st1st1st1st
Calendar performance
 YTD - 20182017201620152014
Fund-1.5%12.9%-0.6%14.8%7.6%
Sector-4.9%11.2%9.1%4.9%2.8%
Rank within sector5 / 9922 / 9486 / 895 / 846 / 82
Quartile1st1st4th1st1st
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.
1.48
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.
0.96
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.
0.44
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%.
10.54
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.
7.03
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.
0.14
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.
0.57
Price movement
52 week high173.9
52 week low162.53
Current bid price-
Current offer price-
Current mid price165.98
Region
1UK100%
Industry sector
1Others32.4%
2Life Insurance10.56%
3Financial Services9.47%
4Support Services7.48%
5Media7.47%
6Building & Construction7.33%
7Travel6.82%
8Oil & Gas Exploration & Production5.81%
9Real Estate4.55%
Asset type
1UK Equities100%
Individual holdings
1RIO TINTO LTD4.16%
2ROYAL DUTCH SHELL3.81%
3CHESNARA3.7%
4LEGAL & GENERAL GROUP3.46%
5IMPERIAL BRANDS PLC3.06%
6PHOENIX GROUP HLDGS3.03%
7OCEAN WILSONS HLDGS2.89%
8FORTERRA INC2.79%
9RPS GROUP2.63%
Management
Fund manager group
No data available.
Fund manager company
Slater Investments
Fund type
OEIC
Fund objective
To produce an attractive and increasing level of income in addition to seeking long term capital growth from a portfolio of investments. The investment team actively manages the portfolio. They may invest in ordinary, preference and convertible shares.
Benchmark
  • IA OE UK Equity Income
Investment style
Growth
Investment method
Shares
Fund managers
NameSinceBiography
Barrie Newton18/09/2011Barrie Newton obtained a BA Combined Honours Economics with Geography from University of Exeter (1966 -1969). He obtained a MSc by Research (taken part time) from the School of Management at University of Bath (1969 - 1974). Barrie joined B S Stock Son & Co in 1969 as a trainee stockbroker and became a partner in 1975. He remained a partner and subsequently became head of Research with the succeeding companies, Stock & Orme and Stock Beech & Co Ltd. Barrie was responsible for smaller company research and corporate fund raising as well as some private client work. Barrie left Stock Beech in 1990 to co-found Rowan Dartington. Barrie, acting in the role of Managing Director, helped to develop the business to be a highly profitable and well diversified regional stockbroker, fund manager and major participant in AIM corporate finance. Barrie ran the largest and most successful client fund which outperformed its benchmark for 14 out of 15 years. Barrie concluded the sale of Rowan Dartington in 2006 and joined Slater Investments in 2008.
Nigel Milton02/12/2013
Mark Slater18/09/2011Mark co-founded Slater Investments, the specialist UK equity fund manager, in 1994. The company manages a hedge fund, three unit trusts and portfolios for large pension schemes, high net worth individuals and charities. The company’s core methodology focuses on selecting companies able to produce reliable, above-average earnings growth supported by healthy cash flow. Shares in these companies are only acquired when the PE ratio is attractive in relation to the growth rate - i.e. when the PEG is relatively low. This approach has produced strong gains over the years, outperforming stock market indices by a substantial margin, with the company’s growth fund winning numerous industry awards. The company’s equity income strategy, pursued over the past ten years, has also performed strongly with exceptionally low volatility. Mark was awarded 2014 Fund Manager of the Year by City A.M. He is one of the top performing UK fund managers during his career and recently won Overall UK Hedge Fund Manager of the Year 2014 (Acquisition International), Best Performing UK Fund 2014 (Wealth & Finance International), Best Fund Manager Over Three Years 2013 (Professional Adviser) and UK Growth Winner 2012 (Money Observer). Slater Investments was voted Boutique Wealth Manager of the Year in 2014 (Acquisition International) and 2012 (Spears). During his career, Mark has served on the boards of four public companies in which he has been a substantial shareholder. Mark has an MA in History from Cambridge University.
Ralph Baber18/09/2011Ralph Baber has a BSc (Hons) degree, is a qualified Chartered Accountant and is a Member of the Securities Institute. He has served on a number of regulatory panels including the SFA appeals tribunal. Ralph was a manager at Price Waterhouse until he left to join a client, CAL Futures Limited, first as Finance Director and then, as Managing Director. The company was a hedge fund manager and a futures and options broker. In 1995 the business was sold to Union plc where Ralph initially became an executive director before being promoted to Chief Executive in 1997. In 1998 Union plc bought WorldInvest, which had £1.6 billion of equity funds under management. When Union plc was acquired by a private group, Ralph joined that group as Managing Director and then became Chairman of the group. After co-founding Slater Investments in 1994, Ralph initially served as a non-executive director before taking on the role of Chief Operating Officer.
Compliance
IA Recognised, UCITS IV Compliant
Domicile
No data available.
Fund for sale in
United Kingdom
Slater Income A Acc
Initial charge5.25%
Annual charge1.5%
Min single investment£1,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price176.69
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeMWHI
Slater Income A Inc
Initial charge5.25%
Annual charge1.5%
Min single investment£1,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)1.55%
Total expense ratio (TER)1.52%
Bid price-
Offer price-
Mid price159.76
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi code0D6U
Slater Income B Acc
Initial charge1%
Annual charge1%
Min single investment£100,000
Min regular saving£50,000
Available in ISAYes
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price182.21
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeMWHJ
Slater Income B Inc
Initial charge1%
Annual charge1%
Min single investment£100,000
Min regular saving£50,000
Available in ISAYes
Ongoing charge (OCF)1.05%
Total expense ratio (TER)1.07%
Bid price-
Offer price-
Mid price164.8
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi code0D6V
Slater Income P Acc
Initial charge1%
Annual charge0.75%
Min single investment£5,000,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price183.49
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeMWHK
Slater Income P Inc
Initial charge1%
Annual charge0.75%
Min single investment£5,000,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)0.8%
Total expense ratio (TER)0.77%
Bid price-
Offer price-
Mid price165.98
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeI3PP
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.