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PFS CHELVERTON UK EQUITY INCOME B

PFS CHELVERTON UK EQUITY INCOME B - Overview

Overview of PFS CHELVERTON UK EQUITY INCOME B

A generalist UK equity fund focusing primarily on smaller companies that offer the prospect of growth and dividend income at a reasonable price. To qualify for inclusion companies must offer a prospective yield at purchase that is 50% greater than the FTSE Mid and Small cap average yield. The manager has an established track record running a similar closed ended version of the fund.

  • Standard Initial Charge 0.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector UK Equity Income
Structure OEIC
Launched November, 2006
Size £345m
Yield 4.1%
Charging basis Capital
Dividends paid 31 Mar, 30 Jun, 30 Sep, 31 Dec

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Total expense ratio 1.00%

Risks

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 Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

This is a specialised fund within the Equity Income Sector with a focus on small cap stocks that offer a prospective yield at purchase that is 50% greater than the FTSE Mid and Small cap average yield. The manager has established a a good track record within the small cap universe and whilst the fund offers an attractive income yield, investors should consider the extra risks associated with investing in small cap companies.

Portfolio

Allocation Proportion(%)
Equity 96
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 4
Allocation Proportion(%)
UK 99
Europe 1
North America 0
Japan 0
Pacific 0
Other Equity 0
Allocation Proportion(%)
Large Caps 0
Mid Caps 33
Small Caps 67

View all performance data for this fund

Investment process

The fund has 3 investment objectives; in order of priority these are: preservation of capital, increasing dividend payments by the rate of inflation, and an increase in capital values. To achieve this the manager will invest in companies that can demonstrate strong balance sheets (less than 30% gearing) and cashflows, with the prospect of growing earnings supported by dividend payments. These companies should also carry a low enterprise value / ebitda rating. Target companies can broadly be split into those that offer high but stable dividend yields and those are lower yielding but offer the prospect of dividend growth. Often this may involve the manager adopting a contrarian approach to investing. The fund is diversified across a broad selection of industries and tends to be focused on smaller companies with market capitalisations of less than £100m at investment.

Live feed

Bid price(inc) 99.23p
Accum units 158.20p
Fund commentary 19/02/09
Fund data updated on 18/12/14

Asset allocation

Allocation Proportion(%)
Equity 96
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 4

Equity Geographic

Allocation Proportion(%)
UK 99
Europe 1
North America 0
Japan 0
Pacific 0
Other Equity 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 0
Mid Caps 33
Small Caps 67

Top 10 holdings

As at: 31/03/2014
1.92% Galliford Try
1.69% Wh Smith Plc
1.66% Ashmore Group Plc
1.63% Premier Farnell
1.51% Informa Plc
1.51% Electrocomponents
1.49% St Ives Plc
1.49% Segro Plc
1.49% Amlin
1.49% Hansteen Hldgs
Source: Trustnet

Sector breakdown

Portfolio details

80-90 holdings, 80% of the fund is invested in small companies.

Constraints

Maximum in any sector is 20% of gross assets Maximum of 5% in any company No more than 5% income to be derived from any single source

Average monthly relative returns Bestinvest MRI
09/10 10/11 11/12 12/13 13/14   3 years 5 years Career 3 years 5 years Career
0.54% -0.19% 0.19% 0.28% 0.14%   0.21% 0.20% -0.22% 93.30% 94.60% 33.70%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

David Horner

Manager. Horner qualified as a Chartered Accountant in 1984 at Touche Ross, where he also worked in insolvency. In 1986 he moved to 3i plc where he gained experience in a range of activities from fundraising through to advising on the sale of companies, in both the quoted and unquoted sector. In 1993 he joined Strand Partners where he was involved in identifying, structuring, negotiating and making investments in the 'Micro-Cap' quoted sector. In 1998 he left to set up Chelverton Asset Management Limited.

Track record

David Horner has 8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.22%. During the worst period of relative performance (from December 2006 - July 2009) there was a decline of 32% relative to the index. The worst absolute loss has been 61%.

Periods of worst performance
Absolute -61% (May 2007 - February 2009)
Relative -32% (December 2006 - July 2009)

Sector record since December 2006 (8 yrs)




About the MRI

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.

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