fund
Polar Capital Global Insurance I GBP
A focused fund specialising in international insurance stocks.
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499.22p
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.
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648.67p
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?
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0.00%
Initial chargeSome 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!
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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).
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0.87%
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.
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1.20%
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…
The fund's aim is long term capital growth through investment in companies operating in the international insurance sector. The fund benefits from the experience of Alec Foster, who has spent his entire career, over 40 years in the insurance market. Research is generated internally, leveraging off individual company contacts, and in-house specialist knowledge. Although the fund's performance will be vulnerable to the insurance cycle, it can also be considered as a long term investment. Investors in this fund are exposed to US dollar currency risk.
Fund summary
| Sector | Specialist |
| Structure | OFFSHORE FUND |
| Launched | May, 2011 |
| Size | £1,230m |
| Yield | 1.20% |
| Charging basis | |
| Dividends paid | 30 Apr, 31 Oct |
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 | 0.87% |
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Investment process
The fund's aim is long term capital growth through investment in companies operating in the international insurance sector. Such companies may include, Property/Casualty, Lloyd's vehicles, Re-insurers and Life Assurance companies. The fund can also hold bonds and cash. The manager adopts a bottom up investment style and pays close attention to company value. In depth knowledge of portfolio companies is gained from industry contacts, as well as a short list of firms who specialise in researching the insurance industry. Generally there are four things that the manager considers for a prospective investment: (i) What is the company underwriting; (ii) Are they making an underwriting profit; (iii) Quality of management and (iv) Reserving. The fund's reference benchmark is the MSCI World Insurance Index, the managers are eligible for a performance fee of 10% of any outperformance of the benchmark index.
This fund benefits from the experience of Alec Foster, who has spent his entire career in the insurance market. Research is generated internally, leveraging off individual company contacts, and in-house specialist knowledge. Although the fund's performance will be vulnerable to the insurance cycle, it can also be considered as a long term investment. Note investors in this fund are exposed to US dollar currency risk.
Manager research
Average monthly relative returns
- 15/16 -0.15%
- 16/17 0.81%
- 17/18 2.47%
- 18/19 0.19%
- 19/20 0.00%
Bestinvest MRI
- 3 years 0.00%
- 5 years 0.00%
- Career 0.55%
- 3 years 0.00%
- 5 years 0.00%
- Career 96.50%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Alec Foster
Born 1945 Foster has been working within the insurance sector since 1967 and joined Hiscox Plc in 1976 where he was Group Investment Officer until 2008. In 2008 he led a management buy out of Hiscox Investment Management from Hiscox Ltd, the new business now trades as HIM Capital. He was also Chairman of Universal Salvage until 2007, when the company was sold to Copart Inc of America. Foster is also assisted by Nick Martin (Analyst), the majority of research is undertaken in-house. New Street have been bought out by Polar Capital
Track record
Alec Foster has 12.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.55%. During the worst period of relative performance (from February 2009 - November 2009) there was a decline of 27% relative to the index. The worst absolute loss has been 24%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 97%.
Periods of worst performance
| Absolute | -24.00% (June 2001 - September 2002) |
| Relative | -27.00% (February 2009 - November 2009) |
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 March 2011
| 7.4% | Arch Capital Group |
| 6.9% | Berkley(w.r.)corp |
| 6.6% | Berkshire Hathaway Inc |
| 6.1% | Partnerre |
| 5.1% | Ace Limited |
| 4.9% | Amlin |
| 4.3% | Markel Corp |
| 4.3% | Munchener Ruckversicherungs Ag |
| 4.1% | Transatlantic Hldgs Inc |
| 3.8% | Alleghany Corp |
| Source: Trustnet |
Sector breakdown
| Insurance | 100.00% |
| Insurance | 100.00% |
Portfolio
The portfolio is focused with 20-30 stocks. The majority of investment opportunities are usually US based.