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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 23/11/2017
216.33p
Accumulation Shares
Income Shares
208.73p
Fund Size
£117M

October 2017

The Fund produced a return of +2.9% during the month compared to a return of +2.9% for the MSCI World Index NR (£).

We recently had a meeting with Edward Lam, manager of the Somerset Emerging Markets Dividend Growth Fund, a constituent of Spectrum.  Along with emerging market equities in general, Somerset’s Fund has posted strong absolute returns of +21.2% so far this year.

The Fund is now more fully invested than it was at the beginning of 2016 when the cash weighting was relatively high.  Edward Lam believes that many emerging markets are in far better shape than they were during 2013’s ‘taper tantrum’ and that the corporate earnings recession of the last few years has largely run its course.

Nevertheless, emerging markets shouldn’t be treated as one homogenous bloc and it is important to remain selective.  The Dividend Growth Fund has a high active share and a low correlation to its benchmark index.  The portfolio is constructed following a thorough assessment of each company’s prospects as well as a consideration of the broader macroeconomic risks.  Thus, Edward Lam doesn’t own Chinese banks, feeling that they are only in the foothills of a non-performing loan cycle, but he has been investing in SberBank, which should benefit from Russia’s recovering economic growth.

Whilst the Fund is likely to lag when emerging market equities are rising sharply across the board, we believe that Somerset’s more circumspect approach will continue to add real value over the long term.

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

Source: Lipper, Link Fund Solutions Limited

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 +115.7% +75.0% +157.4%
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 +63.8% +62.1% +63.8%
Annualised Volatility +8.9% +11.3% +13.9%

*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  7.6
Morant Wright Sakura Hedged 6.8
Findlay Park American 5.8
Evenlode Income  5.5
Odey Allegra Developed Mkts   5.4
Polar Capital Global Insurance 5.4
Lindsell Train Global Equity  5.0
Yacktman US Equity 5.0
Halley Asian Prosperity  4.7
CG Portfolio Real Return  4.6
Total Top 10 55.8
12 other holdings 36.4
Cash & equivalent 7.8
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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