Fact sheet: MI Chelverton UK Equity Growth

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
UK GROWTH
Sector
UT UK All Companies
Fund type
OEIC
Primary aim
GROWTH
Why Money Observer Rates MI Chelverton UK Equity Growth

New for 2018. Backs cash-generative smaller companies

Like other Chelverton Asset Management funds, MI Chelverton UK Equity Growth invests in companies that are listed in the UK but fall outside the FTSE 100 index. It has been managed since inception by James Baker, who joined Chelverton in 2014 to run the fund. He has more than 30 years of equity market experience, specialising throughout his career in UK small and medium company stock selection. He was joined in 2016 by assistant fund manager Edward Booth.

The pair aim to deliver long-term capital growth by investing in small and medium-sized companies that are highly cash-generative and can therefore fund their own growth. They look for companies with strong market positions that are expected to grow faster than the UK economy. Typically, they will have some form of sustainable competitive advantage, such as a unique product or dominant market position.

The managers' starting point is to quantitatively screen their universe of 1,200 stocks. To warrant further consideration, a company must have the ability to convert 75 per cent of operating profit into free cash flow from gross margins higher than 20 per cent. They also test companies' balance sheets to see that debt is not too burdensome and that the amount of working capital is not too high. This generates around 150 ideas for further assessment ヨ a more in-depth analysis of sales, customer base and margins ヨ and around half of these make it into the portfolio.

At the end of 2017, more than half of the portfolio was in technology stocks, one fifth in industrials and 15 per cent in consumer stocks.<\p>

3 Year Performance
Fund Performance93.3%
Average of Rated Funds Group44.3%
Sector Performance19.1%
Fund information
Fund name
MI Chelverton UK Equity Growth B Acc
Fund manager company
Maitland Institutional Service
Fund type
OEIC
Fund managers
  • James Bakersince 20/10/2014
  • Edward Boothsince 01/11/2017
Accolades
Fund objective
The objective of the fund is to achieve long-term capital growth by investing primarily in a portfolio of fully listed and AIM traded UK equities.
Benchmark
  • IA UK All Companies
Investment style
Growth
Investment method
Shares
Quick stats
1 Year return
22.8%
1 Year rank in sector
1/274
Sector
UT UK All Companies
Yield
0.9%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
1%
Fund size
£212m (£59m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
67
Mid price
216.4725
Top in this sector
Fund name1 Year
MI Chelverton UK Equ Grth22.8%
Stan Life Inv UKEqUncns20.8%
MFM Bowland20.6%
CFP SDL Free Spirit19.8%
Marlborough UK Multi-Cap Gth19.8%
...more in UT UK All Companies

Performance snapshot

Holdings snapshot

  • UK100%
  • Software16.6%
    Support Services8.8%
    Electronic & Electrical Equipment7.8%
    Other Financial7.6%
    Pharmaceuticals6.8%
  • UK Equities96.3%
    Money Market3.7%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund2.1%-0.1%7.1%22.8%93.3%-
Sector3.6%-2.3%0.2%7.9%19.1%50.8%
Rank within sector251 / 28026 / 2781 / 2771 / 2741 / 259-
Quartile4th1st1st1st1st
Calendar performance
 YTD - 20182017201620152014
Fund3%33.3%19.1%26.7%-
Sector-1.5%13.8%11.2%3.7%0.6%
Rank within sector9 / 2772 / 27219 / 2622 / 256-
Quartile1st1st1st1st
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
18
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.92
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
1.85
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
10.98
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
7.2
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
2.38
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.58
Price movement
52 week high217.87
52 week low177.45
Current bid price-
Current offer price-
Current mid price216.47
Region
1UK100%
Industry sector
1Software16.65%
2Support Services8.81%
3Electronic & Electrical Equipment7.81%
4Other Financial7.57%
5Pharmaceuticals6.82%
6Leisure & Hotels6.29%
7Diversified Industrials5.61%
8Engineering & Machinery4.57%
9Investment Companies4.48%
Asset type
1UK Equities96.25%
2Money Market3.75%
Individual holdings
1LIONTRUST ASSET MANAGEMENT1.92%
2COATS GROUP PLC1.81%
3POLYPIPE GROUP PLC1.81%
4AVON RUBBER1.79%
5STRIX GROUP PLC1.74%
6QUIXANT PLC1.69%
7TYMAN PLC1.68%
8JTC PLC1.59%
9PROACTIS HLDGS1.59%
Management
Fund manager group
Phoenix Fund Services (UK)
Fund manager company
Maitland Institutional Service
Fund type
OEIC
Fund objective
The objective of the fund is to achieve long-term capital growth by investing primarily in a portfolio of fully listed and AIM traded UK equities.
Benchmark
  • IA UK All Companies
Investment style
Growth
Investment method
Shares
Fund managers
NameSinceBiography
James Baker20/10/2014James Baker a history graduate from Cambridge University, has over 30 years of equity market experience on both buy and sell sides, specialising for all of his career in UK Small and Mid caps stock selection. He has worked for several organisations over the years, but most notably spent 11 years from 1999 to 2011 as part of the ABN Amro, Small Mid cap sales team, which was consistently top ranked by Extel. Prior to joining Chelverton he worked as the Assistant fund manager on the Rathbone UK Recovery Fund.
Edward Booth01/11/2017
Compliance
IA Recognised, UCITS IV Compliant
Domicile
No data available.
Fund for sale in
United Kingdom
MI Chelverton UK Equity Growth A Acc
Initial charge5%
Annual charge1.5%
Min single investment£1,000
Min regular saving£500
Available in ISANo
Ongoing charge (OCF)1.75%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price162.3261
CurrencyGBX
Price updated20/04/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeN7BX
MI Chelverton UK Equity Growth B Acc
Initial charge5%
Annual charge0.75%
Min single investment£1,000
Min regular saving£500
Available in ISANo
Ongoing charge (OCF)1%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price216.4725
CurrencyGBX
Price updated20/04/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeKN1B
MI Chelverton UK Equity Growth B Inc
Initial charge5%
Annual charge0.75%
Min single investment£1,000
Min regular saving£500
Available in ISANo
Ongoing charge (OCF)1%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price209.7376
CurrencyGBX
Price updated20/04/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeKN1A
Data provided by

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