ABSOLUTE INSIGHT EQUITY MARKET NEUTRAL B3P GBP

A global equity market neutral fund.

  • 109.19p Price (Inc)
  • 117.60p Price (Acc)
  • 4.00% 0.00%

    Initial charge
  • 0.75% Annual management charge
  • 1.17% Ongoing charges
  • 0.00% Yield

Fund data last updated 15 November 2019

A daily dealt Dublin registered UCITS fund offering exposure to a global equity market neutral strategy targeting returns of LIBOR +3% before fees on a rolling 5yr basis. The fund will generally have a beta of zero, and will not take significant sector or market exposure, with underlying exposures in the form of paired positions. Stop losses are also applied to each paired position with the aim of preserving capital and managing portfolio volatility. The fund's exposure was originally focused primarily on the UK equity market, however since H2 2013 the strategy was broaden to include a more global investment universe.

Fund summary

Sector Targeted Absolute Return
Structure OFFSHORE FUND
Launched October, 2008
Size £34m
Yield 0.00%
Charging basis
Dividends paid

Charges

Initial charge 4.00%
Initial charge via Bestinvest 4.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 1.17%

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Investment process

The fund seeks to provide positive absolute returns in all market conditions. Since this is a market neutral strategy the performance of the strategy is generally less dependent on the direction of the market. The Fund is composed almost entirely of paired trades. Each pair consists of two units - a lead (either long or short) which drives the position, and a secondary unit which creates the market neutrality and isolates the alpha identified in the lead unit. Occasionally an outright long or short position may be taken - within the constraints of the net exposure and beta limits. The team use a proprietary screening process to identify potential trade opportunities, whether long or short, then conduct fundamental analysis before entering into trades. The screening process focuses on the cash flow return on investment. Stop-loss review triggers apply to the open profit and loss on the paired trades - not individual positions themselves. Triggers are based on predetermined falls from the peak, as well as the falls from the inception of the position.

Manager research

Average monthly relative returns

Bestinvest MRI

14/15 15/16 16/17 17/18 18/19 3 years 5 years Career 3 years 5 years Career
-0.80% -0.27% -0.20% -0.01% 0.00% 0.00% 0.00% -0.28% 0.00% 0.00% 22.40%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Richard Howarth

Howarth joined Insight in January 2002 as a Director, UK Equities in the UK Core Funds team. He currently manages the portfolios of a number of their largest UK segregated pension funds. He has experience of managing investments for pension funds, charities, private unit trusts and OEICs against a variety of benchmarks including CAPS.

Track record

Richard Howarth has 5.2 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.28%. During the worst period of relative performance (from February 2005 - October 2008) there was a decline of 23% relative to the index. The worst absolute loss has been 47%.

Periods of worst performance

Absolute -47.00% (May 2007 - February 2009)
Relative -23.00% (February 2005 - October 2008)

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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Portfolio

Broad or sector based indices may be used to hedge lead positions.

Constraints

Expected net exposure limit ± 5% of NAV. Expected gross exposure limit 100% of NAV. Portfolio beta ± 0.15. Max VAR 4%.

Key Investor Documents

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