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Spectrum Fund

The investment objective of the Spectrum Fund is to produce long-term capital growth. The Fund’s investment policy is to diversify investment predominantly in collective investment schemes, though the Fund may be invested in bonds, equities, cash and other eligible instruments from time to time. The Spectrum Fund may invest up to 100% of its assets in collective investment schemes. 

In addition to the O share class referred to on this page, I Classes are also available. Please contact us for more information.

'O' Share Class Price 19/10/2017
216.08p
Accumulation Shares
Income Shares
208.49p
Fund Size
£114M

August 2017

The Fund produced a return of +0.6% during the month compared to a return of +0.9% for the MSCI World Index NR (£).

Better Capital, a closed-ended private equity trust, was established in the aftermath of the global financial crisis by Jon Moulton.  It invests in distressed businesses with the aim of improving their prospects.  It has had mixed success.  However, the recent sale of Gardner Aerospace, which was the trust’s largest underlying holding, to a Chinese buyer, has proven transformative.  Following the sale, Better Capital has redeemed and cancelled ~83% of its shares, returning £222m to investors.immed the better performing stocks in the portfolio, only to see those companies become even more highly valued.  Although this has weighed on the fund’s short-term performance, the team’s disciplined application of a value approach has been central to their long-term success.

Whilst Gardner’s improving fortunes and subsequent sale have underpinned strong returns over the last eighteen months, it is instructive to review Better Capital’s long-term track record.  In truth, the +6.6% annualised net asset value total return since inception is disappointing given the opportunity costs and the inherent risks of this type of investing.  One salutary lesson has been how difficult it is to successfully turn around struggling businesses during the current cycle.  Gardner was a wonderful investment but a number of others were not, destroying investors’ capital as operational headwinds proved too severe.

After returning the vast majority of its capital to shareholders, Better Capital is now Spectrum’s smallest holding.  It has three remaining investments which it aims to sell over the next couple of years.  We will redeploy the capital into Spectrum’s core holdings.

Performance is calculated on a total return basis, net of fees, in sterling terms.

Source: Lipper, Capita Asset Services

The source of performance data has been changed.  This change may have resulted in variations from previously published performance figures.

Risk Analysis Since Launch (29/02/2008)Fund IA MSCI 
Total Return +110.9% +70.3% +148.6%
Max drawdown* -12.9% -33.5% -37.4%
Best Month +8.4% +7.3% +10.2%
Worst Month -5.8% -12.9% -10.6%
Positive Month +63.7% +62.0% +63.7%
Annualised Volatility +9.0% +11.4% +14.0%

*Measures the worst investment period

Performance is calculated on a total return basis, net of fees, in sterling terms.

 

Top 10 HoldingsFund (%)
Egerton Capital Equity  7.7
Morant Wright Sakura Hedged 6.3
Findlay Park American 5.6
Evenlode Income  5.5
Yacktman US Equity  5.4
Polar Capital Global Insurance 5.3
Odey Allegra Developed Mkts  5.2
Lindsell Train Global Equity 4.9
CG Portfolio Real Return  4.8
Halley Asian Prosperity 4.7
Total Top 10 55.4
12 other holdings 37.0
Cash & equivalent 7.6
Total 100.0
Past performance is not necessarily a guide to future performance. The value of a fund and any income from it may go down as well as up and investors may get back less than they invested. Changes in rates of exchange may cause the value of investments to go up or down. This data is provided for information only and should not be reproduced, published or disseminated in any manner. Although Troy considers the data to be reliable, no warranty is given as to its accuracy or completeness. Any comparisons against indices are for illustrative purposes only.

How to Invest

You may invest directly, via a broker or adviser, or through a number of online fund platforms.

Find Out More

Key Facts

  • Fund Manager
    Tom Yeowart
  • Inception Date
    29/02/2008
  • Currency
    £ Sterling
  • Available Share Class
    O & I
  • ISIN (O Class)
    GB00B2990B27 (Acc)
    GB00B2996V43 (Inc)
  • Bloomberg (O Class)
    CFTSPOA_LN (Acc)
    CFTSPOI_LN (Inc)
  • Sedol (O Class)
    B2990B2 (Acc)
    B2996V4 (Inc)

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