The Cayenne Trust

A fund of investment trusts which may use derivatives to protect capital.

  • 157.50p Price (Inc)
  • - Price (Acc)
  • 0.00% Initial charge
  • 1.00% Annual management charge
  • 2.04% Ongoing charges
  • 2.50% Yield

A fund of investment trusts which incorporates a derivative overlay strategy to provide additional downside protection with the intention of achieving absolute returns in the order of Libor +5% with low levels of volatility. There is no gearing at the fund level. The management have been running money on a similar basis through their offshore Apollo fund since 1997.

Fund summary

Sector Global
Structure X-INVESTMENT TRUST
Launched January, 2006
Size £37m
Yield 2.50%
Charging basis 20% Income 80% Capital
Dividends paid Nov, Jun.

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 2.04%

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Investment process

The fund will seek to achieve absolute returns primarily through capital appreciation combined with low volatility characteristics. Investment Process adopts a relative value approach which seeks to exploit pricing inefficiencies in closed ended capital structures, whilst at the same time employing a hedging strategy to reduce market risk. The management team will stick mainly to UK listed closed ended vehicles to achieve their investment objective; quantitative screens awill be employed to narrow down opportunities across the 500 odd company universe. FTSE 100 / 250 and S&P put options or futures will be a feature of the portfolio to provide additional downside protection. On average the fund is expected to be about 50% long; although this may seem a small percentage in view of the absolute return credentials of the investment objective, a number of the underlying holdings already have some form of protection already built in.

Manager research

Average monthly relative returns

  • 14/15 0.00%
  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

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

Track record

Periods of worst performance

Absolute 0.00% ()
Relative 0.00% ()

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 2015

9.3% Apollo Investment Fund Cyp0.5
4.9% Caledonia Investments
4.4% Tr Property Investment Trust
4% Aberdeen Asian Smaller Companies Investment Trust Plc Ord
4% Schroder Real Estate Invest Tst Lt
3.9% Herald Corp.
3.7% Pantheon Internat Participations
3.7% Rit Capital Partners Plc
3.4% F&C F&C Private Equity Trust Ord
3.2% Polar Capital Technology Trust Plc Ord 25p
Source: Trustnet

Portfolio

The trust will typically have exposure to about 30-50 positions. It is intended to allocate 15% of the portfolio to the Apollo fund - there will be no double charging on this holding. There is no gearing at the fund level. Warrants are often included to provide upside participation.

Key Investor Information

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