SVM UK Opportunities A

Previously limited to small and mid cap stocks, now investing throughout the UK universe.

  • 457.80p
    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?

  • 5.25% 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!

  • 1.50%
    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).

  • 1.82%
    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.

  • 0.90%
    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 18 September 2020, fund data last updated 26 March 2004

Previously mandated to invest only within mid and small cap UK equities, the fund can now invest across the market cap range, including AiM.. SVM take a venture capitalist approach to equity investing setting them apart from the majority of the competition. Focusing on bottom-up stock selection, this fund benefits from a highly dedicated management team.

Fund summary

Sector UK All Companies
Structure OEIC
Launched March, 2000
Size £117m
Yield 0.90%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 5.25%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.82%

Allocation

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Investment process

The Fund’s aim is to achieve long term capital growth from a UK equity portfolio comprising of the managers ‘best ideas’ within the UK universe. Stocks are selected where the manager believes an absolute return can be achieved. SVM take an almost venture capital approach to investing, placing more emphasis on the absolute value of a company than the relative. This is reflected in their taking a "trade valuation" of companies as opposed to what the market thinks. Another point of note is the use of the Inland Revenue figures to reveal how much tax is paid. The team feel this is more appropriate than the provision in the accounts as the Inland Revenue gain "more financial information than the City". Stock picking is the main driver with any "themes" developing as a by-product of the bottom up approach.

Manager research

Average monthly relative returns

  • 15/16 0.11%
  • 16/17 0.12%
  • 17/18 0.41%
  • 18/19 -1.07%
  • 19/20 0.80%

Bestinvest MRI

  • 3 years 0.04%
  • 5 years 0.07%
  • Career 0.18%
  • 3 years 60.30%
  • 5 years 66.30%
  • Career 86.00%

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

Neil Veitch

Prior to joining SVM, Veitch was responsible for UK mid & small cap investments at Dutch merchant bank, Kempen Capital Management. As well as managing the UK portfolios, he also managed European mandates. He holds a BA (Hons) in Economics, a MSc in Investment Management and is qualified as a Chartered Financial Analyst (CFA). His sector responsibilities include European industrials, technology, oil and gas E&P and UK support services & house builders.

Track record

Neil Veitch has 14.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.18%. During the worst period of relative performance (from April 2006 - October 2008) there was a decline of 44% relative to the index. The worst absolute loss has been 66%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 86%.

Periods of worst performance

Absolute -66.00% (May 2007 - February 2009)
Relative -44.00% (April 2006 - October 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 31 July 2020

5.1431% Dcc
4.6063% Tesco
4.5543% Jadestone Energy Inc
4.0261% Prudential Plc
3.4201% Unilever
3.4114% Norcros Plc
3.3681% National Grid Plc
3.3162% Crh
3.2729% Synthomer Plc
3.091% Micron Technology Inc
Source: Trustnet

Sector breakdown

Industrials 26.00%
Consumer Services 13.00%
Health Care 13.00%
Financials 13.00%
Oil & Gas 11.00%
Consumer Goods 10.00%
Technology 5.00%
Utilities 4.00%
Basic Materials 3.00%
Money Market 2.00%

Portfolio

45-55 stocks.

Constraints

Initial holdings tend to be in the 2-3% region with top slicing beginning at 5%. There are no sector limits set upon the manager by the group.

Key Investor Information

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