Franklin UK Managers Focus W

Multicap UK equity fund comprising best ideas of four Franklin fund managers.

  • 294.39p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.85%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 1.40%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 30 July 2021

A focused portfolio of 40-50 stocks comprising the best ideas from four of the Franklin UK equity team managers. There are no benchmark, stock or sector restrictions and there is no overall controlling manager. Up to 10 stocks are blue chip, up to 10 are mid cap, up to 20 are smaller companies and 10 stocks are chosen from any area of the UK market. Each of the four managers was initially allocated 25% of the fund to invest in his specialist area.

Fund summary

Sector UK All Companies
Structure OEIC
Launched May, 2012
Size £357m
Yield 1.40%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.85%

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Investment process

The fund aims to produce a total return in excess of that of the FTSE All-Share index over the medium to long term. Colin Morton (Franklin UK Equity Income) manages the blue chip proportion. Paul Spencer (Franklin UK Mid Cap) manages the mid cap proportion, Richard Bullas (Franklin UK Smaller Cos) manages the smaller companies proportion and Ben Russon (Franklin UK Opportunities Fund) has an unrestricted mandate to invest anywhere in the UK market. By virtue of its structure, no more than 50% can be invested in a particular market cap sector. This ensures a broadly based, yet focused portfolio of UK stocks. Portfolio construction and rebalancing is over seen by Mark Hall previously portfolio manager on the UK Opportunities Fund. Positions sizes are generally between 2-3%.

Manager research

Average monthly relative returns

  • 16/17 0.24%
  • 17/18 0.22%
  • 18/19 -0.43%
  • 19/20 0.52%
  • 20/21 0.47%

Bestinvest MRI

  • 3 years 0.19%
  • 5 years 0.20%
  • Career 0.25%
  • 3 years 85.10%
  • 5 years 91.80%
  • Career 99.30%

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

Franklin Focus Fund Team

Colin Morton began his career in 1983 as a trainee stockbroker with Wise Speke & Co, before joining Rensburg in 1988. Paul Spencer joined Rensburg from TD Waterhouse where he was Head of Research, specialising in small and mid cap investment analysis. From July 1991 to October 1995 he was the Fund Manager of the BWD UK Smaller Companies Trust. Richard Bullas joined Rensburg Fund Management in 2000, becoming a fund manager in 2006. He previously worked at Aviva. Prior to joining Rensburg Bullas worked at AVIVA Plc as a Market Analyst in the life and pensions department. Previously he spent a short time working at a Chartered Accountants for the Audit Team. He holds a BSc (Hons) degree in Business and Management Studies from Bradford University School of Management, graduating in 1998. Mark Hall trained as an Accountant before joining Rensburg in 1988 as a Smaller Companies Investment Analyst. He subsequently managed private client discretionary portfolios for four years before assuming control of BWD Rensburg Equity Growth in 1997. Hall holds a BA (Hons) in Geography with additional Economics. He also holds the IMC and MSI (Dip) qualifications.

Track record

Franklin Focus Fund Team has 14.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.25%. During the worst period of relative performance (from June 2008 - March 2010) there was a decline of 13% relative to the index. The worst absolute loss has been 41%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -41.00% (May 2007 - November 2008)
Relative -13.00% (June 2008 - March 2010)

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.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

2.78% Astrazeneca Plc
2.76% Serco Group Plc
2.75% Unilever
2.69% Reckitt Benckiser Group Plc
2.68% Ferguson Plc
2.65% Bunzl
2.64% Phoenix Group Hldgs
2.61% Lancashire Hldgs
2.61% Jtc Plc
2.61% Intermediate Capital Group
Source: Trustnet

Sector breakdown

Industrials 26.00%
Financials 22.00%
Consumer Goods 21.00%
Consumer Services 9.00%
Health Care 7.00%
Technology 4.00%
Oil & Gas 4.00%
Cash & Cash Equivalents 3.00%
Basic Materials 3.00%

Portfolio

Multi cap 40-50 UK stock portfolio. As new money flows in, it is allocated equally between the four managers. Positions sizes are generally between 2-3%.

Constraints

Each manager may have up to 25% of his portfolio in cash.

Key Investor Information

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