MI Chelverton UK Equity Growth Fund B Accumulation shares

UK 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, a more in-depth analysis of sales, customer base and margins 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.

Narrative and ratings content all as of 01 January 2018.

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MI Chelverton UK Equity Growth Fund B Accumulation shares
Maitland Institutional Services Ltd.
Open Ended Investment Company
UK All Companies
1 %
Risk Rating
3 Year Sharpe
3 Year Alpha
0.9 %
IA UK All Companies Sector
The investment objective of the Fund is to achieve long-term capital growth by investing primarily in a portfolio of fully listed and AIM traded UK small and medium sized market capitalised companies equities.
Holding %
Equiniti Group PLC 2.48 %
Strix Group PLC 2.05 %
Clinigen Group PLC 2.05 %
Polypipe Group PLC 1.92 %
Tyman PLC 1.92 %
Renew Holdings PLC 1.90 %
Coats Group PLC 1.85 %
Castleton Technology PLC 1.79 %
Liontrust Asset Management PLC 1.75 %
Tarsus Group PLC 1.70 %
Region %
United Kingdom 97.77 %
Sector %
Technology 29.95 %
Industrials 23.94 %
Consumer Cyclical 16.69 %
Financial Services 10.73 %
Healthcare 7.52 %
Basic materials 7.47 %
Maitland Institutional Services Ltd.
London, United Kingdom
Legal Structure
Open Ended Investment Company

Data provided by Morningstar.

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