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!

Loomis Sayles US Equity Leaders Q GBP

Targets capital growth by investing primarily in large US companies.

  • 433.90p
    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!

  • 0.60%
    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).

  • 0.60%
    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.

  • 0.10%
    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 27 January 2022, fund commentary last updated 06 October 2021

The actively managed fund seeks to gain from the long-term capital growth of large US-based companies. Manager Aziz Hamzaogullari invests in US equities which can produce long-term profit growth and trade at a significant discount to their intrinsic value. Its holdings include social media giant Facebook and gaming technology group Nvidia. Hamzaogullari and his Boston-based team of analysts take an active, bottom-up investment approach, looking at a stock’s individual strengths including sustainable competitive advantages. They invest in around 40 stocks and look to hold them for many years to take advantage of their growth. Most stocks are valued at over $50billion.

Fund summary

Sector North America
Structure OEIC
Launched April, 2013
Size £1,152m
Yield 0.10%
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 0.60%
Ongoing charges figure 0.60%

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Investment process

Hamzaogullari takes a long-term investment perspective, avoiding what he views as ‘short-sighted’ biases such as the market’s herd mentality which can overshadow company fundamentals. He believes that only 1% of businesses have long-term sustainable growth potential and that a thorough research process is needed to identify those that are trading below their intrinsic value. Hamzaogullari has developed a seven-stage investment process based around quality, growth and valuation, to help him and his team do this. The first four steps focus on quality including looking at a company’s barriers to entry, cashflow generation and long-term shareholder orientated owners. They then looks at growth drivers for the business over a 10 year plus period and its intrinsic value range. The stock weightings will typically be built up to 2.5% to 5% and allowed to grow to 8%. The managers will trim or add to the positions based on valuation. The fund’s main exposure is to the information technology and communication services sectors, but the team try to limit this risk by owning a mixture of both new and old systems and processes.

Manager Aziz Hamzaogullari has enjoyed huge success both on this fund and the Loomis Sayles Global Growth Equity sister fund. Both funds have a distinctive well-articulated, long-term private equity style investment process. This means they have a very high bar on quality, long-term growth and value and want to work closely with management teams. Given this emphasis the fund is likely to outperform in volatile and growth markets but lag in more value-centric times. It may also miss out on momentum stock movements. The charismatic Hamzaogullari benefits from working with a strong, experienced team of sector specialist analysts, with the result being a concentrated portfolio of high quality, high growth stocks.

Manager research

Average monthly relative returns

  • 17/18 0.25%
  • 18/19 -0.30%
  • 19/20 0.24%
  • 20/21 1.22%
  • 21/22 -0.73%

Bestinvest MRI

  • 3 years 0.24%
  • 5 years 0.13%
  • Career 0.27%
  • 3 years 84.90%
  • 5 years 80.00%
  • Career 99.30%

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

Aziz Hamzaogullari

Hamzaogullari is a vice president of Loomis, Sayles & Company and lead portfolio manager of the Loomis Sayles large cap growth strategies, including the Loomis Sayles Growth Fund. He has 18 years of investment management experience and joined Loomis Sayles in 2010 from Evergreen Investments, where he was the senior portfolio manager of the Evergreen Omega and Large Company Growth Funds. Hamzaogullari joined Evergreen in 2001, was promoted to director of research in 2003 and portfolio manager in 2006. He was head of Evergreen's Berkeley Street Growth Equity team and was the founder of the research and investment process. Prior to joining Evergreen he was a senior equity analyst and portfolio manager for Manning & Napier Advisors. He received a BS from Bilkent University, Turkey, and an MBA from George Washington University.

Track record

Aziz Hamzaogullari has 15.3 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 October 2020 - October 2021) there was a decline of 9% relative to the index. The worst absolute loss has been 39%. 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 -39.00% (October 2007 - February 2009)
Relative -9.00% (October 2020 - October 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.

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Top 10 holdings

Data accurate as at 30 November 2021

7.9% Nvidia Corp
6.7% Amazon.com Inc
5.8% Meta Platforms Inc
5.4% Microsoft Corp
4.7% Oracle Corp
4.6% Visa Inc
4.1% Salesforce.com Inc
3.8% Alphabet Inc
3.8% Alphabet Uw C Usd
3.7% Autodesk Inc
Source: Trustnet

Sector breakdown

Information Technology 36.00%
Communications 17.00%
Health Care 15.00%
Consumer Discretionary 12.00%
Industrials 9.00%
Consumer Staples 4.00%
Financials 3.00%
Cash & Cash Equivalents 2.00%
Energy 1.00%

Portfolio

30-40 stocks.

Constraints

Max 8% individual stock weight.

Key Investor Information

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