Ninety One UK Total Return A

A focused FTSE 350 fund which uses a derivative overlay strategy designed to lower volatility.

  • 213.60p
    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?

  • 4.50% 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!

  • 1.25%
    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).

  • 1.35%
    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.

  • 1.50%

    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 01 December 2020, fund data last updated 30 March 2016

The fund aims to outperform the FTSE All-Share over a market cycle with lower levels of volatility by investing in a fairly concentrated portfolio of large and mid-cap UK equities. To achieve the volatility target, manager David Lynch applies a systematic hedging strategy, using FTSE 100 and 250 derivatives to control the fund’s level of exposure to the market. The level of market exposure will vary depending on overall market valuations – essentially it will be raised when equities are cheap and cut when they are expensive.

Fund summary

Sector Specialist
Structure OEIC
Launched July, 1999
Size £23m
Yield 1.50%
Charging basis Capital
Dividends paid Acc units only


Standard initial charge 4.50%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.25%
Ongoing charges figure 1.35%


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Investment process

The portfolio is built around best ideas taken primarily (at least 80%) from Alastair Mundy's Investec UK Special Situation Fund. As a result the underlying equities will conform to the Investec Value team’s long term contrarian approach to investing. Equity exposure can be hedged from 0 to 100% of the portfolio, with the size of the hedge determined with reference to stable, long-term fundamental valuation measures such as dividend yield, price to book and price to earnings. The instruments used will be FTSE 100 and 250 futures. The approach to hedge is dynamic and mechanistic - it is designed to be low when market valuation is cheap but rapidly increases as the market becomes expensive. Backtests undertaken by Investec indicate that the cost of hedging is typically between 0-5%, depending on the amount hedged and market volatility.

Under its former name, Investec Capital Accumulator, this fund invested in zero dividend preference shares. This universe became increasingly limited, so in 2014 the fund moved to a new process under a new portfolio manager. In view of this significant change to its operation we have downgraded the fund to a one star (switch) rating.

Manager research

Average monthly relative returns

  • 15/16 -0.43%
  • 16/17 0.33%
  • 17/18 -0.10%
  • 18/19 -0.31%
  • 19/20 -2.02%

Bestinvest MRI

  • 3 years -0.81%
  • 5 years -0.51%
  • Career -0.42%
  • 3 years 19.20%
  • 5 years 21.50%
  • Career 19.80%

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

David Lynch

Lynch joined Investec Asset Management in 2004. Prior to this he was an investment analyst for Douglas Deakin Young, where he worked for three years. From 1999 to 2001 he spent two years working as an assistant portfolio manager at Marathon Asset Management. Lynch graduated from Trinity College Dublin in 1995 with a Master’s degree in Economics and Political Science. He holds the Securities Institute Diploma and is a CFA Charterholder.

Track record

David Lynch has 6.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.42%. During the worst period of relative performance (from February 2014 - March 2020) there was a decline of 36% relative to the index. The worst absolute loss has been 38%.

Periods of worst performance

Absolute -38.00% (December 2019 - March 2020)
Relative -36.00% (February 2014 - 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.


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Top 10 holdings

Data accurate as at 31 July 2020

8.3% Travis Perkins
6.4% Grafton Group Plc
4.5% Citigroup Inc
4.4% British American Tobacco
4.2% Kingfisher
4% Delphi Technologies Plc
3.6% Easyjet
3.4% Glaxosmithkline
3.1% Natwest Group Plc
2.9% Imperial Brands Plc
Source: Trustnet

Sector breakdown

Industrials 33.00%
Consumer Services 23.00%
Consumer Goods 22.00%
Financials 16.00%
Health Care 4.00%
Utilities 1.00%
Basic Materials 1.00%
Telecommunications 1.00%


30-50 stocks.


Maximum position size 8%, typically 2-4%. Hedge can apply from 0-100% of the portfolio NAV.

Key Investor Information