The Cayenne Trust

  • 157.50p
    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).

  • 2.04%
    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.

  • 2.50%
    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…

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
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%
Annual management charge 1.00%
Ongoing charges figure 2.04%

Allocation

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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

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 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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Allocation

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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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