TM SANDITON UK A

Large and mid cap UK equity fund following a "business cycle" approach.

  • 94.66p Price (Inc)
  • 104.70p Price (Acc)
  • 3.00% 0.00%

    Initial charge
  • 0.75% Annual management charge
  • 0.87% Ongoing charges
  • 2.80% Yield

Prices as at 24 June 2015 , fund data last updated 14 November 2019

The fund targets long-term capital growth by investing in any economic sector of the UK market. Investing mainly in FTSE 100 and FTSE 250 stocks, manager Julie Dean follows a “business cycle” approach, judging the state of the economy and then focusing on the types of companies she believes will benefit from it. For instance, she is likely to invest in more defensive companies during recessions but favour more cyclical stocks when the economy is booming.

Fund summary

Sector UK All Companies
Structure OEIC
Launched June, 2015
Size £22m
Yield 2.80%
Charging basis Income
Dividends paid 30 Apr, 31 Aug

Charges

Initial charge 3.00%
Initial charge via Bestinvest 3.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.87%

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Investment process

The fund’s investment universe is predominantly the 350 largest companies on the UK stockmarket (the FTSE 350), but some small cap stocks may also be included. Julie Dean follows a business cycle approach to investing, setting sector and style exposures based on Sanditon's macro-economic views. The team believes that company profits vary depending on the stage of the business cycle, with different stocks having different sensitivities to the economic environment. Stocks are classified into seven types; Commodity Cyclicals, Consumer Cyclicals, Industrial Cyclicals, Financials/Interest Rate Sensitives, Growth Defensives and Value Defensive. Dean tilts the portfolio towards stock types she believes will benefit in the next stage of the cycle – for instance, defensive stocks during a recession. The process also includes bottom-up analysis, with stocks being screened on both quantative and qualitative bases before being researched in more depth. The importance attached to top-down and bottom-up analysis varies according to the stage in the cycle – "inflection points" in the business cycle are catalysts for portfolio changes.

Julie Dean has a strong track record over her career at Invesco, HSBC, Cazenove and Schoders. However, it is far from consistent - outperformance was largely confined to the period from 2008-13, and her fund did perform poorly in relative terms before her departure from Schroders.

Manager research

Average monthly relative returns

Bestinvest MRI

14/15 15/16 16/17 17/18 18/19 3 years 5 years Career 3 years 5 years Career
0.00% -0.34% -0.82% -0.17% -0.31% -0.43% 0.00% 0.11% 13.40% 0.00% 98.40%

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

Julie Dean

Dean joined Sanditon in 2015. She had previously been head of the Business Cycle team at Schroders from 2013 to 2014. This followed the acquisition by Schroders of Cazenove Capital, where she had worked as a UK fund manager from 2002. Prior to that she was at HSBC where she was also responsible for UK funds. She joined HSBC from Invesco GT, where she ran equity funds including the GT UK Key Trends unit trust and institutional portfolios. Dean has a BA in Modern History from St Anne’s College, Oxford.

Track record

Julie Dean has 19.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.11%. During the worst period of relative performance (from October 2013 - June 2019) there was a decline of 34% relative to the index. The worst absolute loss has been 45%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 98%.

Periods of worst performance

Absolute -45.00% (August 2000 - January 2003)
Relative -34.00% (October 2013 - June 2019)

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 August 2019

8.1929% Babcock Intl Group Plc
7.0229% Vodafone Group
6.1571% British American Tobacco
5.8508% Itv
5.5648% Glaxosmithkline
4.4007% Imperial Brands Plc
3.8409% Bt Group
3.6984% Sainsbury(J)
3.6697% Melrose Industries Plc
3.3599% Wpp Plc
Source: Trustnet

Sector breakdown

Industrials 20.00%
Consumer Services 18.00%
Financials 14.00%
Consumer Goods 13.00%
Telecommunications 11.00%
Health Care 10.00%
Money Market 6.00%
Oil & Gas 5.00%
Utilities 3.00%
Technology 1.00%

Portfolio

35-65 stocks.

Constraints

Max 5% AiM. Max 8% tracking error.

Key Investor Documents

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