UBS US Equity C

A US large/mid cap equity fund which is likely to outperform during value led markets.

  • 193.07p
    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!

  • 0.75%
    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).

  • 0.84%
    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 30 July 2021

Investing in large and mid cap US equities, the fund aims to outperform the Russell 1000 Index and is run on a team basis using proprietary research. This process is largely based on the intrinsic value of a company's future cash flows, which has historically given the fund a value bias - stocks that have been ignored or overlooked by the markets.

Fund summary

Sector North America
Structure OEIC
Launched August, 2012
Size £197m
Yield 0.30%
Charging basis Income
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 0.75%
Ongoing charges figure 0.84%

Allocation

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Investment process

Investing mainly in large and mid cap US equities the investment process focuses on companies whose intrinsic value is not fully reflected in the current trading price. Intrinsic value is determined through analysis of the company's core competency, competitive advantage, management, but in particular the company's projected cash flows. Historically this approach has tended to give the fund a bias towards value stocks (companies that have been ignored or overlooked by the markets. ) and the manager does not predict short term market movements. A team of career analysts with sector specialisms provide a list of recommended stocks in order of preference. The fund manager makes final stock decisions as well as portfolio construction. Stock and sector weightings are set after taking into account strategic themes and risk/return considerations such as market sensitivity.

Manager research

Average monthly relative returns

  • 16/17 0.58%
  • 17/18 -0.26%
  • 18/19 -0.44%
  • 19/20 -0.19%
  • 20/21 0.40%

Bestinvest MRI

  • 3 years -0.08%
  • 5 years 0.02%
  • Career -0.04%
  • 3 years 50.00%
  • 5 years 64.80%
  • Career 58.70%

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

Thomas Digenan

Digenan joined UBS in 1993 and was president of the firm’s mutual funds and relationship funds organisation before moving to the US equity team, where he is now North American equity strategist. Prior to joining UBS he was a senior manager in the tax department of KPMG Peat Marwick, working exclusively within the investment services industry. Digenan has a BS from Marquette University and an MST from DePaul University. He is a member of the CFA Institute, the CFA Society of Chicago, and the American Institute of Certified Public Accountants.

Track record

Thomas Digenan has 26.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.04%. During the worst period of relative performance (from April 1996 - February 2000) there was a decline of 36% relative to the index. The worst absolute loss has been 37%.

Periods of worst performance

Absolute -37.00% (May 2007 - February 2009)
Relative -36.00% (April 1996 - February 2000)

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 August 2019

4.2% Amazon.com Inc
3.6% Marsh & Mclennan Cos Inc
3.6% Unitedhealth Group Inc
3.3% Western Digital Corp
2.9% Facebook Inc
2.9% Disney (Walt) Co
2.8% Jpmorgan Chase & Co
2.7% Progressive Corp(Ohio)
2.6% Johnson & Johnson
2.5% Delta Air Lines Inc
Source: Trustnet

Sector breakdown

Information Technology 20.00%
Financials 18.00%
Health Care 16.00%
Communications 13.00%
Industrials 13.00%
Consumer Discretionary 12.00%
Energy 3.00%
Materials 3.00%
Consumer Staples 2.00%
Others 1.00%

Portfolio

Number of holdings 70-90.

Constraints

Sector positions are restricted to +/- 12.5% deviation from benchmark weightings (Russell 1000), individual stock positions +/- 7.5%. Maximum 5% cash.

Key Investor Information

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