MERIAN UK SPECIALIST EQUITY R GBP

  • 1229.31p Price (Inc)
  • - Price (Acc)
  • 0.00% 0.00%

    Initial charge
  • 1.00% Annual management charge
  • 1.08% Ongoing charges
  • 0.00% Yield

Prices as at 29 April 2016 , fund data last updated 15 November 2019

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
Size £484m
Yield 0.00%
Charging basis Capital
Dividends paid Acc shares only

Charges

Initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.08%

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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.

Given the combination of team experience, and the increasingly limited / poor quality of sell side coverage in UK small and mid cap universe we believe this UCITS strategy should have a high probability of maintaining the track record set by the original Cayman registered fund.

Manager research

Average monthly relative returns

Bestinvest MRI

14/15 15/16 16/17 17/18 18/19 3 years 5 years Career 3 years 5 years Career
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

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

Track record

Periods of worst performance

Absolute 0.00% ()
Relative 0.00% ()

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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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.

Key Investor Documents

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