TB Saracen UK Alpha B

Value driven approach with a historic bias to mid and small cap investing.

  • 1019.07p
    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!

  • 1.00%
    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).

  • 1.21%
    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.

  • 0.30%
    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 07 May 2021, fund data last updated 25 October 2004

Saracen Fund Managers are a boutique investment house focusing solely upon the UK market. The house approach is strongly biased to value investing and historically to small and mid cap. Using a non-indexed approach, the portfolio is selected on a stockpicking basis driven by a disciplined investment process.

Fund summary

Sector UK All Companies
Structure OEIC
Launched March, 1999
Size £0m
Yield 0.30%
Charging basis
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 1.00%
Ongoing charges figure 1.21%

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Investment process

Saracen are a boutique investment manager with a strong and clearly defined process. Focusing upon value investing, the fund's manager, Jim Fisher, has created a defined investment process. The Saracen view of value is an above average dividend yield (4%+) dividend cover greater than 1.5%, a low P/E (less than 12 times) and strong cash flow. Lowly valued companies that have strong potential for upwards re-rating are the ideal, however stocks where there is a high degree of expectation are not considered due to the downside if the market suddenly decides that these expectations are not going to be met. This process is called the "seven pillars of wisdom". These pillars are: Sensible Valuation, Analysis of technical trends, Real economy, Analysis of fundamentals, Cash Flow, Earnings Revisions and the Natural Life Cycle. All these factors have an influence on the valuation, which is the key driver.

Manager research

Average monthly relative returns

  • 16/17 -0.33%
  • 17/18 -0.02%
  • 18/19 0.10%
  • 19/20 -0.65%
  • 20/21 1.43%

Bestinvest MRI

  • 3 years 0.29%
  • 5 years 0.10%
  • Career 0.02%
  • 3 years 74.90%
  • 5 years 67.40%
  • Career 77.00%

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

Scott McKenzie

McKenzie spent nine years at Britannia Asset Management where he managed income funds, including the Britannia High Yield Fund, and also had responsibility for client servicing. He moved to Norwich Union Investment Management (which later became Aviva) in 1999, managing its UK Equity Income fund and the RBS Income fund and co-managing the Norwich Distribution fund. He is an Associate Member of the Society of Investment Professionals and has a Management Diploma. In October 2005 McKenzie joined Martin Currie. He moved to Saracen in 2014.

Track record

Scott Mckenzie has 15.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.02%. During the worst period of relative performance (from January 2007 - March 2020) there was a decline of 37% relative to the index. The worst absolute loss has been 52%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 77%.

Periods of worst performance

Absolute -52.00% (May 2007 - June 2016)
Relative -37.00% (January 2007 - 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.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

4.7% Standard Life Aberdeen
4.3% Johnson Matthey
4.3% Barclays Plc
4.1% Premier Foods Plc
4.1% Rio Tinto
3.8% Chemring Group
3.7% Premier Miton Grp Plc
3.6% Alpha Financial Markets Cons
3.6% Gleeson(M.j.)Group
3.6% Prudential Plc
Source: Trustnet

Sector breakdown

Financials 26.00%
Industrials 25.00%
Consumer Goods 17.00%
Consumer Services 13.00%
Basic Materials 11.00%
Health Care 2.00%
Oil & Gas 2.00%
Money Market 2.00%
Others 1.00%

Portfolio

The manager prefers a tight portfolio of around 25-50 stocks and has historically had leaning to small and mid cap investing.

Constraints

The fund is not constructed in relation to any index.

Key Investor Information

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