FTF ClearBridge US Value X

A concentrated large cap US equity portfolio with a contrarian investment approach.

  • 314.60p
    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).

  • 1.09%
    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.

  • 0.50%
    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 17 September 2021

This fund targets long term capital growth by investing in predominantly large cap US equities which the manager believes are trading at a significant discount to their intrinsic value. The investment approach is benchmark unconstrained with an emphasis on in depth industry and company research. The manager takes a longer term view to investing so portfolio turnover is low, however, given the more contrarian approach expect periods of significant underperformance.

Fund summary

Sector North America
Structure OEIC
Launched December, 2012
Size £31m
Yield 0.50%
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 1.09%

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Investment process

The fund’s objective is capital growth, principally from investment in large cap US equities. The manager believes this is most consistently achieved through long term ownership of companies purchased at large discounts to their intrinsic value. Ideas are sourced by looking for signs of “expectation gaps” – areas of the market where the pricing mechanism has broken down. These are often found in companies undergoing management or business upheaval or with emerging business models with high uncertainty. The key areas considered in stock analysis are competitive strategy, financial and managerial acumen, and valuation. The manager looks to understand an industry or company to a much greater level than his peers. This often means applying a pragmatic and contrarian approach,that is, buying into emerging stories or buying an unloved stock when others have given up on it. Since 2005 the sole manager approach has evolved into a more collegiate, team-based approach to investing.

Manager research

Average monthly relative returns

  • 16/17 -0.26%
  • 17/18 -0.67%
  • 18/19 -0.58%
  • 19/20 -1.31%
  • 20/21 1.05%

Bestinvest MRI

  • 3 years -0.28%
  • 5 years -0.35%
  • Career -0.27%
  • 3 years 35.90%
  • 5 years 21.80%
  • Career 22.10%

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

Sam Peters

Peters joined Legg Mason Capital Management (LMCM) in 2005. Prior to joining LMCM, Peters worked for Fidelity Management & Research, serving as portfolio manager of the Fidelity Select Health Care Fund and the Fidelity Select Medical Equipment Fund, as well as Team Leader for the Health Care sector. From 2002 to 2004, he was portfolio manager for the Fidelity Select Electronics Fund, and from 2000 to 2001, he was portfolio manager for the Fidelity Select Banking Fund. Peters joined Fidelity in 1999 as a Bank Analyst. In 1996, he founded Samuel M. Peters Investment Advisors, an independent advisory firm. From 1992 to 1995, Peters was a Financial Consultant for Eppler, Guerin & Turner. He has a BA in economics from the College of William & Mary, an MBA from the University of Chicago and received his CFA designation in 1997.

Track record

Sam Peters has 9.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.27%. During the worst period of relative performance (from July 2014 - September 2020) there was a decline of 39% relative to the index. The worst absolute loss has been 27%.

Periods of worst performance

Absolute -27.00% (July 2019 - March 2020)
Relative -39.00% (July 2014 - September 2020)

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

5.9932% Microsoft Corp
4.823% Amazon.com Inc
3.9638% Alphabet Inc
3.6986% American International Group Inc
3.6779% Alexion Pharmaceuticals Inc
3.5078% Eqt Corp
3.2295% Dxc Technology
2.9322% Abbvie Inc
2.8756% Equitable Hldgs Inc
2.549% Wheaton Precious Metals Corp
Source: Trustnet

Sector breakdown

Consumer Discretionary 17.00%
Information Technology 16.00%
Financials 15.00%
Communications 12.00%
Health Care 12.00%
Energy 9.00%
Utilities 5.00%
Materials 4.00%
Industrials 4.00%
Consumer Staples 3.00%

Portfolio

30-60 stocks, weighted according to risk-adjusted expected returns.

Constraints

Primarily invests in stocks with a market cap of more than US$5bn at the time of purchase.

Key Investor Information

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