VERITAS GLOBAL EQUITY INCOME D GBP

Large cap international income fund with a focus on capital preservation.

  • 21153.00p Price (Inc)
  • - Price (Acc)
  • 0.00% 0.00%

    Initial charge
  • 0.75% Annual management charge
  • 0.90% Ongoing charges
  • 3.40% Yield

Prices as at 29 July 2014 , fund data last updated 14 November 2019

The fund targets a high and growing level of income and to preserve capital in real terms over the long term. The managers invest worldwide in a concentrated portfolio of mainly large cap companies. In order to meet the requirement for capital preservation they target businesses with durable competitive advantages and hence reliable revenues that are at attractive valuations. The managers also take account of themes – long term economic trends they have identified that will provide a tailwind to portfolio companies.

Fund summary

Sector Global Equity Income
Structure OFFSHORE FUND
Launched July, 2012
Size £507m
Yield 3.40%
Charging basis Capital
Dividends paid Apr, Sep

Charges

Initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.90%

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Investment process

The managers target what they call “real returns”, a combination of capital preservation and growth. They have a theoretical universe of over 3,000 companies worldwide, but do not try and cover all of them. Instead they look for ideas using three methods: •Themes: a small number of trends the managers believe will have an impact on industries or companies over the next 5 years or so; •Quantitative screening: looking for attractive financial characteristics such as low valuation, quality and yield; •Proprietary insights: feeding off contacts of the managers such as company executives or industry consultants. The Veritas analysts research the resulting ideas, looking for companies with durable competitive advantage, that are cash generative, with strong balance sheets, sustainable yields and the potential for growth. This process results in an investable universe of around 250 stocks from which the portfolio is formed. The universe is valuation agnostic, but portfolio companies must meet a 15% annual return target as well as being attractive on a risk/return basis. If insufficient attractive ideas are available the managers may increase the cash weighting (up to 25%).

Manager Charles Richardson made his name at Newton in the 1990s, becoming its chief investment officer before setting up Veritas, where he could focus on fund management. He is supported by co-manager Andy Headley as well as five dedicated sector analysts. The fund's focus on capital preservation has typically resulted in it providing a degree of protection from falling markets, but lagging rising markets - performance has also been generally less volatile than the benchmark.

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
-1.44% 0.00% -0.33% -0.88% -0.12% -0.44% 0.00% -0.18% 9.50% 0.00% 32.60%

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

Charles Richardson

Richardson is Chairman, a partner and a fund manager of Veritas Asset Management LLP. He was previously vice chairman, chief investment officer and fund manager at Newton Investment Management from 1993 to 2002. Prior to that he was director and head of UK Equities, County NatWest Investment Management from 1986 to 1993 and did military service from 1980 to 1985. Education: MA, MBA, FSI.

Track record

Charles Richardson has 14.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.18%. During the worst period of relative performance (from July 2012 - July 2019) there was a decline of 41% relative to the index. The worst absolute loss has been 22%.

Periods of worst performance

Absolute -22.00% (May 2008 - October 2008)
Relative -41.00% (July 2012 - July 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 June 2014

5.6% ENI
5.1% Microsoft Information
5.1% Sonic Healthcare
5.1% SES
5.0% Novartis
4.4% Vinci
4.2% BP
4.2% British American Tobacco
4.1% Li & Fung
4.1% Capita
Source: Veritas

Portfolio

25-40 stocks. Index put options may be used as a protective measure.

Constraints

Max 8% in any stock. Max 25% cash.

Key Investor Documents

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