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SESC JPM UK EQUITY PF - Fund overview

No Bestinvest rating


Overview of SESC JPM UK EQUITY PF

This is a core UK fund aiming to add value from investing in the UK stockmarket by typically investing in large and medium size companies. The managers hold growth (faster growing) and value (out of fashion) stocks in a "barbell" approach that attempts to ensure that all stocks are contributing to out performance at any given time. A proprietary screening model (TMV) is employed to categorise stocks, all of which are then tracked.

Standard Initial Charge

0.00% 0.00%

Fund summary

Sector  –
Product type  PENSION FUND
Launched  June, 2006
Size  £2m
Yield 0.0%
Charging basis  –
Dividends paid  –
Bid price 82.83p

Fund Charges

Standard Initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 5.00%
Annual management charge 1.00%
Total expense ratio 1.90%
Reduction in yield (10yr) 2.40%

Bestinvest says


This fund is built around the philosophy that on average, fast growing cheap stocks with good news flow outperform slow growing expensive stocks with bad news flow. To find companies displaying such characteristics, the team screen for stocks using their proprietary screening model, which throws up enough stocks so that the fund does does not take large bets relative to its benchmark, the FTSE All Share. Whilst the investment process has merit we believe the fund's rigid portfolio constraints leads to reasonably close alignment with the Index. This is fine when a passive/tracker fee is charged, but not as in this instance when investors are paying a higher fee than they would expect to pay for a more actively managed fund. Those investors seeking full active management should consider one of our recommended funds within the UK All Companies sector.

Portfolio

sesc jpm uk equity pf asset allocation illustration
Allocation Proportion
Equity 97%
High yield bonds
Quality bonds
Property
Commodities
Hedge
Fund cash 3%
sesc jpm uk equity pf equity geographic illustration
Allocation Proportion
UK 98%
Europe 1%
Nth America 0%
Japan 0%
Pacific 0%
Other Equity 1%
sesc jpm uk equity pf equity capitalisation illustration
Allocation Proportion
Large Caps 67%
Mid Caps 21%
Small Caps 12%

Investment process


The managers believe that portfolio construction is of fundamental importance and have a highly disciplined strategy in this regard.
The in house quants screen, TMV (Trends, Momentum & Value) looks at three different factors. The value of stocks based on different price ratios, specifically one-year forward earnings (P/E multiple); Earnings revisions (broker upgrades or downgrades) on a 3 month basis as the managers believe investors tend to react to good and bad news on companies, resulting in a strong correlation between earnings revision and share price performance and Momentum as their analysis shows that stocks tend to out perform for extended periods.
Over 900 stocks are monitored in this way and are subsequently rated 1-5 and tracked, the most attractive are then investigated by the research team to verify the results.
The portfolio construction centres around using this bottom-up process to identify areas of the market that the managers believe are cheap. The fund is then built around it. The aim is to buy as many stocks as possible without diluting the performance characteristics that they are targeting. Whilst this helps to diversify risk it means that bets relative to the benchmark are relatively small.

The value of your investments and the income from them can go down as well as up, and you can get back less than you originally invested. Past performance or any yields quoted should not be considered reliable indicators of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only

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