Fact sheet: Montanaro UK Income

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 EQUITY INCOME
Sector
FO Equity - UK
Fund type
OEIC
Primary aim
GROWTH & INCOME
Why Money Observer Rates Montanaro UK Income

Rated Fund 2016-2017. Small company specialists with an emphasis on quality

Montanaro UK Income was highly commended in Money Observer's 2015 and 2016 fund awards. It was launched in 2006 by Charles Montanaro, whose business, Montanaro Asset Management, specialises in investment in smaller UK and European companies.

Consequently, although this fund invests primarily in UK small and medium-sized companies, up to 20 per cent may be invested in Europe. The fund's yield is currently 3.3 per cent and it pays income quarterly.

Montanaro describes his investment approach as conservative and to show that their interests are aligned with investors he and his investment team have their own money in the fund.

Montanaro is keen to stress that the investment ideas for the fund are generated internally - rather than through stockbrokers - and are researched in detail. Desktop research is supplemented with company and site visits 'to kick the tyres'. He says that a team approach is adopted and what they look for are well-managed, high-quality companies in growth markets.

They do this because they believe these are the companies that deliver the highest returns over the long run. But he says doing this does not mean that they compromise on valuation, arguing that it is possible for 'quality growth' to come at a reasonable price.

He says they are genuine long-term investors, and this keeps turnover and transaction costs within the fund low. He points out that once they identify a suitable company their ideal holding period is 'forever'. This is one reason why they do not always greet takeovers with as much enthusiasm as others.

3 Year Performance
Fund Performance46.6%
Average of Rated Funds Group34.5%
Sector Performance25%
Fund information
Fund name
Montanaro UK Income Seed GBP
Fund manager company
Montanaro Eurpn Smaller Co Plc
Fund type
OEIC
Fund managers
  • Charles Montanarosince 18/12/2012
Accolades
Highly Commended - UK Equity Income - Smaller Funds
Fund objective
Capital growth and income. The Fund will invest primarily in Small and MidCap companies quoted in the UK that offer an attractive dividend yield or the potential for dividend growth. Up to 20% of the Fund may be invested in companies quoted in the EU (excluding the UK), Iceland, Norway and Switzerland. No unquoted investments are permitted.
Benchmark
  • IA UK Equity Income
Investment style
Active
Investment method
Shares
Quick stats
1 Year return
24.2%
1 Year rank in sector
5/61
Sector
FO Equity - UK
Yield
-
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.
0.35%
Fund size
£201m (£126m 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.
82
Top in this sector
Fund name1 Year
Old Mutual UK SmCos Fcus71.8%
Boost FTSE 100 3x LD ETP41.6%
Old Mutual UK Dynmc Eq38.1%
Boost FTSE 250 2x LD ETP37.1%
Boost FTSE 100 2x LD ETP26.8%
...more in FO Equity - UK

Performance snapshot

Holdings snapshot

  • UK80.9%
    Italy4%
    Sweden3.7%
    Spain2.5%
    Portugal2%
  • Industrials19%
    Financials18.3%
    Consumer Discretionary18.2%
    Consumer Staples10.5%
    Materials9.3%
  • UK Equities80.9%
    Italian Equities4%
    Swedish Equities3.7%
    Spanish Equities2.5%
    Portuguese Equities2%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund0.6%5.1%14%24.2%46.6%113.6%
Sector-0.7%4.2%7%15.6%25%65.4%
Rank within sector9 / 6514 / 653 / 645 / 613 / 523 / 44
Quartile1st1st1st1st1st1st
Calendar performance
 YTD - 20172016201520142013
Fund16.3%1%20.1%2.8%33.2%
Sector8%8.9%4.9%1%23.7%
Rank within sector3 / 6454 / 574 / 5312 / 497 / 46
Quartile1st4th1st1st1st
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.
5.05
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.
1.02
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.
0.77
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%.
11.34
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.
7.07
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.
0.69
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.
0.62
Price movement
52 week high2
52 week low1.62
Current bid price-
Current offer price-
Current mid price1.96
Region
1UK80.88%
2Italy3.98%
3Sweden3.74%
4Spain2.52%
5Portugal2.03%
6Money Market1.93%
7Switzerland1.61%
8Norway1.39%
9Belgium1.01%
Industry sector
1Industrials18.97%
2Financials18.3%
3Consumer Discretionary18.19%
4Consumer Staples10.48%
5Materials9.25%
6Real Estate7.13%
7Health Care5.51%
8Information Technology4.68%
9Utilities4.32%
Asset type
1UK Equities80.88%
2Italian Equities3.98%
3Swedish Equities3.74%
4Spanish Equities2.52%
5Portuguese Equities2.03%
6Money Market1.93%
7Swiss Equities1.61%
8Norwegian Equities1.39%
9Belgian Equities1.01%
Individual holdings
1CINEWORLD GROUP3.63%
2BIG YELLOW GROUP PLC3.51%
3TAYLOR WIMPEY PLC3.42%
4ST JAMES`S PLACE PLC3.39%
5MARSHALLS2.98%
6HISCOX LTD2.96%
7ARROW GLOBAL GRP PLC2.88%
8BOOKER GROUP PLC2.88%
9POLYPIPE GROUP PLC2.76%
Management
Fund manager group
Montanaro
Fund manager company
Montanaro Eurpn Smaller Co Plc
Fund type
OEIC
Fund objective
Capital growth and income. The Fund will invest primarily in Small and MidCap companies quoted in the UK that offer an attractive dividend yield or the potential for dividend growth. Up to 20% of the Fund may be invested in companies quoted in the EU (excluding the UK), Iceland, Norway and Switzerland. No unquoted investments are permitted.
Benchmark
  • IA UK Equity Income
Investment style
Active
Investment method
Shares
Fund managers
NameSinceBiography
Charles Montanaro18/12/2012Charles graduated with an honours degree in Anthropology from Durham University in 1976. He spent four years in industry before joining Merrill Lynch in 1980 as a private client broker in London. He joined Dean Witter Reynolds in 1984 and Drexel Burnham Lambert in 1987 as a Senior Vice President, where in both cases he was their top institutional broker in the UK, joining the high yield bond department in 1989. In 1990, Charles joined MMG Patricof (now Apax Partners) as a Director of investment banking working with UK smaller companies. In August 1991, he founded Montanaro to specialise in analysing and investing in European smaller companies on behalf of leading institutions. He has since launched several funds now totalling over 1 billion and established a strong track record. In addition, he has served on the Boards of two public smaller companies
Compliance
Distributor Status, IA Recognised, UCITS IV Compliant
Domicile
No data available.
Fund for sale in
Switzerland, Finland, France, United Kingdom, Ireland, Netherlands, Norway, Offshore, Sweden
Montanaro UK Income EUR
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.85%
Total expense ratio (TER)0.86%
Bid price-
Offer price-
Mid price0.881
CurrencyEUR
Price updated20/07/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeE3WU
Montanaro UK Income GBP
Initial charge-
Annual charge0.75%
Min single investment£1,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.85%
Total expense ratio (TER)0.87%
Bid price-
Offer price-
Mid price1.127
CurrencyGBP
Price updated20/07/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeE3WV
Montanaro UK Income Seed EUR
Initial charge-
Annual charge0.25%
Min single investment£1,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.35%
Total expense ratio (TER)0.36%
Bid price-
Offer price-
Mid price1.235
CurrencyEUR
Price updated20/07/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeEJA1
Montanaro UK Income Seed GBP
Initial charge-
Annual charge0.25%
Min single investment£1,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)0.35%
Total expense ratio (TER)0.36%
Bid price-
Offer price-
Mid price1.961
CurrencyGBP
Price updated20/07/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeEJA2
Data provided by

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