fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

Jupiter UK Specialist Equity I GBP

A market neutral equity strategy investing predominantly in UK mid caps.

  • 1414.09p
    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!

  • 1.00%
    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).

  • 1.08%
    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.

  • 0.00%
    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, fund data last updated 29 April 2016

A Dublin registered OEIC offering exposure to a market neutral equity strategy by taking long and short positions primarily in UK equities outside the FTSE 100 Index. The strategy is a mirror version of an existing Cayman listed fund launched in 2003 and is designed to target absolute returns with low levels of volatility. Merian have one the City's largest and most experienced UK small and mid cap team, the resulting portfolio is very much the result of output from across the team. Targeted Absolute Return funds do not guarantee a positive return and you could get back less than you invested, much like any other investment. Additionally, the underlying assets of these funds generally use complex hedging techniques through the use of derivative products.

Fund summary

Sector Targeted Absolute Return
Structure OFFSHORE FUND
Launched April, 2016
Size £450m
Yield 0.00%
Charging basis Capital
Dividends paid Acc shares only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.08%

Allocation

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Investment process

Both long and short ideas are the result of collaboration across the Merian UK small / mid cap team - it is the responsibility of all analysts to come up with long and short ideas from their respective sectors. Long positions focus on positive earnings revisions and re-rating potential, shorts the opposite. Stocks are rarely shorted on the basis of valuation alone. The fund generally has a gross exposure of 200%, evenly balanced between long and short positions. Net exposures having rarely been outside of +/-4% range. The team don’t tend to dynamically manage the gross exposure according to the market backdrop, given that it is virtually market neutral, and expect to generate alpha ideas in most market conditions. Generally there are no pair trades. Historically the fund has tended to display thematic tilts, these are not specifically targeted but tend to evolve. Weightings to themes are monitored to ensure the fund is not too vulnerable to market reversals / factor risks.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 1.00%
  • 20/21 0.03%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.52%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 97.30%

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

Tim Service

Service joined Old Mutual in 2007 working originally as an analyst before promotion to deputy fund manager alongside Richard Watts on a segregated small / mid cap mandate in 2010, subsequently promoted to lead in 2012. From 2011 he started to work closely with Ashton Bradbury on UKS. He was formally appointed deputy manager on UKS in Sept 2014, shortly after becoming lead manager following Ashton Bradbury's retirement. Prior to joining OMAM, Service worked on the sell side with ABN AMRO and RBS.

Track record

Tim Service has 2.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.52%. During the worst period of relative performance (from September 2020 - March 2021) there was a decline of 4% relative to the index. The worst absolute loss has been 4%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 97%.

Periods of worst performance

Absolute -4.00% (September 2020 - March 2021)
Relative -4.00% (September 2020 - March 2021)

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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Portfolio

60 long positions (sized 1-4%) and 40 shorts (0.5-2%) - excluding indices. On average 40% of the short book is represented by stock specific shorts the balance index shorts.

Constraints

Typically 200% gross exposure, net +/- 5%.

Key Investor Information

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