Lazard UK Omega C

Concentrated portfolio of 25 to 35 conviction holdings.

  • 217.00p
    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.

  • 271.40p
    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).

  • 1.68%
    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.

  • 1.90%
    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 15 January 2021

Tony Willis and team have developed an in-house system for stock screening and then rely heavily on in-house qualitative research to pick the best stocks. This process has a successful track record through the Lazard UK Alpha, although the Omega fund is a more focused portfolio with a bias away from mega caps towards mid sized companies.

Fund summary

Sector UK All Companies
Structure OEIC
Launched November, 2012
Size £239m
Yield 1.90%
Charging basis
Dividends paid May, Nov

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 1.68%

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Investment process

A more focused portfolio than Lazard's UK Alpha, the Omega fund is run along the same lines by the same team. The team, led by Tony Willis have identified their main strength as stock picking. Through the use of their in-house developed "Present Value Model", a form of discounted cash-flow, the process begins with this screening for possible investment opportunities. The Omega fund's objective is to produce an absolute return, however, it is an equity fund holding a concentrated portfolio of stocks. The portfolio will have a mid cap bias because of the team's reluctance to invest in what Lazard term as 'mega cap fillers'. On a stock level the fund will take an unconstrained approach, but aims to achieve absolute diversification through subdivision of the FTSE All-Share into 10 sectors, where holding limits apply.

Manager research

Average monthly relative returns

  • 16/17 -0.06%
  • 17/18 0.04%
  • 18/19 -0.48%
  • 19/20 -0.19%
  • 20/21 0.35%

Bestinvest MRI

  • 3 years -0.11%
  • 5 years -0.07%
  • Career 0.04%
  • 3 years 57.10%
  • 5 years 67.40%
  • Career 93.20%

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

Alan Custis

Custis is responsible for managing UK equity portfolios at Lazard. He joined in March 2004 and has over 15 years of investment experience. Before Lazard he worked for JPMF for 5 years in a variety of UK roles including heading up their mid-cap initiative and more recently as a member of the UK large cap team. Previously he worked at Hill Samuel Asset Management where he was Head of Small Cap investment and at Morgan Grenfell Securities as a derivatives trader. Custis has a Business degree with Honours from Staffordshire University.

Track record

Alan Custis has 12.2 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.04%. During the worst period of relative performance (from April 2009 - March 2020) there was a decline of 13% relative to the index. The worst absolute loss has been 29%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 93%.

Periods of worst performance

Absolute -29.00% (July 2018 - March 2020)
Relative -13.00% (April 2009 - March 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

6% Bp
5.6% Unilever
5.4% Astrazeneca Plc
4.9% Rio Tinto
4.9% Glaxosmithkline
4.1% British American Tobacco
3.7% Tesco Corp
3.7% Anglo American
3.5% Barclays Plc
3.3% Prudential Plc
Source: Trustnet

Sector breakdown

Financials 21.00%
Consumer Goods 18.00%
Consumer Services 16.00%
Industrials 12.00%
Basic Materials 11.00%
Health Care 10.00%
Oil & Gas 6.00%
Telecommunications 3.00%
Money Market 3.00%

Portfolio

Fund holds between 25-35 stocks. Run on similar lines to the UK Alpha, a stock picking approach is taken to portfolio composition. The fund is modelled on the FTSE All Share with a Mid Cap bias.

Constraints

Initial holdings of 2%-5% stock positions will be taken.

Key Investor Information - Income

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Key Investor Information - Accumulation

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