Fact sheet: Strategic Equity Capital IT

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 SMALLER COMPANIES
Sector
IT UK Smaller Companies
Fund type
Investment Trust
Primary aim
GROWTH
Why Money Observer Rates Strategic Equity Capital IT

Rated Fund 2014-2018. Adopting a hands-on private equity approach

This trust won Money Observer's Best UK Smaller Companies Trust award in 2015, after achieving highly commended status in 2014.It lost its star fund manager, Stuart Widdowson, in early 2017 when he left to set up his own fund management company. Having met with the trust's current management team, however, we continue to be impressed by its solid investment process.Before investing, Jeff Harris, formerly Widdowson's assistant, and his co-manager Adam Khanbhai undertake an extensive due diligence process, assessing market conditions, management and stakeholders.Their investments are underpinned by in-house valuations, which they derive using private equity-based techniques, including a focus on cash flows, the potential value of the company to trade or financial buyers, and the capital structure.They regard themselves as long-term investors and typically aim to hold companies for the duration of rolling three-year investment plans that include an entry and exit strategy and a clearly defined route to value creation.During this period, the duo engages constructively with portfolio companies. The primary objective of this is to promote further value creation for investors as opposed to 'hostile activism', but they will 'vigorously defend' investors' interests if they believe they risk being threatened.In the third quarter of 2017, the trust had 17 holdings, with the top 10 accounting for 75 per cent of assets. The shares traded at a small double-digit discount for most of 2017, but had been on a 10 per cent premium during 2015.<\p>

3 Year Performance
Fund Performance15.1%
Average of Rated Funds Group66.8%
Sector Performance53.8%
Fund information
Fund name
Strategic Equity Capital plc
Fund manager company
GVQ Investment Management
Fund type
Investment Trust
Fund managers
  • Adam Khanbhaisince 01/02/2017
  • Jeff Harrissince 01/02/2017
Accolades
Highly commended - Regular savings UK Equity
Fund objective
Strategic Equity Capital plc (“SEC” or “Trust”) is a London-listed investment trust investing predominately in small cap UK equities. The Trust is not constrained by market indices and aims to maximise returns for investors over the medium term.
Benchmark
  • FTSE SmallCap ex IT (TR)
Investment style
None
Investment method
Shares
Quick stats
1 Year return
7.8%
1 Year rank in sector
13/17
Sector
IT UK Smaller Companies
Yield
0.4%
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.
1.31%
Fund size
£150m
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.
124
Mid price
221.5
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
258.97
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
-14.47
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
100
Top in this sector
Fund name1 Year
JPMorganSmCoITplc30.7%
BlkRck Throgmrtn TstPLC30.2%
SVM UK Emerging27.2%
BlackRock Sm Cos IT23.9%
Hndrsn SmCos IT23%
...more in IT UK Smaller Companies

Performance snapshot

Holdings snapshot

  • UK90.8%
    Money Market9.2%
  • Technology21.4%
    Health Care17%
    Financials15.3%
    Support Services15.3%
    Money Market9.2%
  • UK Equities90.8%
    Money Market9.2%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-4.1%-5.7%-5.7%7.8%15.1%116.7%
Sector-0.4%-2.7%1.7%12.2%53.8%99.4%
Rank within sector18 / 1916 / 1916 / 1913 / 1716 / 166 / 15
Quartile4th4th4th4th4th2nd
Calendar performance
 YTD - 20182017201620152014
Fund-7.3%20.2%-9%14.2%32.7%
Sector-1.7%27.6%4%25.3%-5.1%
Rank within sector18 / 1913 / 1715 / 1712 / 161 / 15
Quartile4th4th4th3rd1st
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.
-9.62
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.
1.2
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.
0.13
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%.
21.22
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.
15.35
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.
-0.52
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.
0.47
Price movement
52 week high241
52 week low201.38
Current bid price220
Current offer price223
Current mid price221.5
Region
1UK90.8%
2Money Market9.2%
Industry sector
1Technology21.4%
2Health Care17%
3Financials15.3%
4Support Services15.3%
5Money Market9.2%
6Media8.4%
7Industrials5.9%
8Property4%
9Electronics3.1%
Asset type
1UK Equities90.8%
2Money Market9.2%
Individual holdings
1IFG GROUP9.69%
2EQUINITI GROUP PLC8.97%
3TRIBAL GROUP8.61%
4WILMINGTON PLC8.43%
5CLINIGEN GROUP PLC6.95%
64IMPRINT GROUP PLC6.37%
7EMIS GROUP PLC6.22%
8TYMAN PLC5.86%
9ALLIANCE PHARMA5.59%
Management
Fund manager group
GVQ Investment Management
Fund manager company
GVQ Investment Management
Fund type
Investment Trust
Fund objective
Strategic Equity Capital plc (“SEC” or “Trust”) is a London-listed investment trust investing predominately in small cap UK equities. The Trust is not constrained by market indices and aims to maximise returns for investors over the medium term.
Benchmark
  • FTSE SmallCap ex IT (TR)
Investment style
None
Investment method
Shares
Fund managers
NameSinceBiography
Adam Khanbhai01/02/2017Adam was appointed Deputy Fund Manager of Strategic Equity Capital plc in February 2017. He has 9 years of relevant experience. He joined GVQIM in 2014 as Senior Analyst providing analysis and due diligence on existing and potential investee companies. Prior to joining he worked at OC&C Strategy Consultants for six years as a consultant working no commercial due diligence and strategy projects for corporate and private equity clients. Adam was a Girdlers’ Scholar at Cambridge University and is a qualified CFA charterholder.
Jeff Harris01/02/2017Jeff joined GVQ Investment Management in 2012 as an Analyst. He was appointed Deputy Fund Manager in May 2014 and fulfils this role on both GVQ’s Unconstrained Funds. Jeff is also Lead Manager of Strategic Equity Capital plc. Prior to joining he worked at PricewaterhouseCoopers within the Transaction Services Team on a number of private equity and corporate transactions. Jeff holds the ACA qualification.
Compliance
AIC Member
Domicile
No data available.
Fund for sale in
United Kingdom
Strategic Equity Capital plc
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISAYes
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price258.97
CurrencyGBX
Price updated17/04/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeNJGJ
Data provided by

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