Slater Growth P

Small-cap biased UK equity fund focusing on companies offering sustainable growth at attractive valuations

  • 723.94p
    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!

  • 0.75%
    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).

  • 0.80%
    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.

  • 0.60%
    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, fund data last updated 15 December 2015

The fund's objective is long term capital growth, principally by investing in UK companies. The portfolio includes businesses of all sizes, but typically has a strong bias to small cap stocks. Manager Mark Slater favours companies offering sustainable growth at attractive valuations, forming a concentrated portfolio with at times large holdings in his highest conviction positions.

Fund summary

Sector UK All Companies
Structure UNIT TRUST
Launched January, 2013
Size £718m
Yield 0.60%
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 0.75%
Ongoing charges figure 0.80%

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Investment process

The primary valuation tool utilised in stock selection is the price earnings to growth ratio (PEG) - the manager looks for companies whose value (based on PE) is cheap compared to their growth rate. He screens the entire UK market for low PEG ratios, then applies a secondary cashflow-based screen to verify the earnings figure. Around 85% of portfolio companies come from this screening process, though other sources are also used. The resulting companies are then analysed with a focus on: - Sustainable and above-average earnings growth prospects; - Robust balance sheet/low debt; - A competitive advantage such as a high market share or brand name; - A positive recent trading statement; - An absence of heavy directors’ selling and ideally some recent directors’ buying. Only once this analysis has taken place does Slater meet company management. He is supported by a co-manager and two highly experienced analysts.

Manager Mark Slater now has a strong track record over more than two decades. This is partly explained by his fund’s small-cap focus, but even against a small-cap benchmark his performance still looks good. The concentrated portfolio means returns can be inconsistent, with spectacular outperformance when Slater’s stock bets pay off, but also periods of underperformance when his holdings are out of favour. The process relies heavily on companies' Price Earnings to growth ratios, a valuation tool popularised by legendary investor Jim Slater, the fund manager's late father.

Manager research

Average monthly relative returns

  • 16/17 -1.40%
  • 17/18 1.26%
  • 18/19 -0.21%
  • 19/20 1.12%
  • 20/21 1.78%

Bestinvest MRI

  • 3 years 0.90%
  • 5 years 0.51%
  • Career 0.54%
  • 3 years 98.50%
  • 5 years 93.90%
  • Career 100.00%

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

Mark Slater

Slater co-founded Slater Investments, a specialist UK equity fund manager, in 1994 and is Chairman as well as Chief Investment Officer. A Cambridge University History graduate, he is the son of Jim Slater, the investment guru who popularised the PEG (price-to-earnings growth factor) as an investment tool. Slater began his career as a financial journalist, first managing money for Old Mutual in 1995. The Old Mutual Slater Growth fund he was running was bought by Johnson Fry in 1996 and then in turn by Leggmason. During his career, he has served on the boards of four public companies in which he has been a substantial shareholder.

Track record

Mark Slater has 25.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.54%. During the worst period of relative performance (from March 2005 - November 2008) there was a decline of 26% relative to the index. The worst absolute loss has been 48%. 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 -48.00% (May 2007 - November 2008)
Relative -26.00% (March 2005 - November 2008)

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 June 2020

7.71% Future Plc
5.93% Codemasters Group Holdings Plc
4.97% Hutchison China Meditech
4% Liontrust Asset Management Plc
3.83% Alliance Pharma
3.47% Cvs Caremark Corp
3.23% Prudential Plc
2.98% Tesco Corp
2.89% Iwg Plc
2.7% Jtc Plc
Source: Trustnet

Sector breakdown

Others 17.00%
Software 13.00%
Biotechnology/Medical 13.00%
Media 13.00%
Services 9.00%
Financials 7.00%
Consumer Services 7.00%
Healthcare & Medical Products 3.00%
Insurance 3.00%
Food & Drug Retailers 3.00%

Portfolio

25-40 stocks.

Constraints

Maximum position size 10%. Maximum 20% in any one sector (using Slater's own sector definitions). Typical minimum £50m market cap.

Key Investor Information

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