Man GLG Undervalued Assets Fund Professional Accumulation Shares (Class C)
New for 2018. Uses disciplined process to identify recovery opportunities
This fund bounced back during 2017, after a difficult year for performance in 2016 amid Brexit-related headwinds.
Henry Dixon and Jack Barrat, the fund's managers since its inception in 2013, seek out opportunities within UK stocks that are being ignored or fallen out of favour with investors, thereby leading to potential recovery opportunities.
Dixon manages an income version of the fund, but because this fund does not need to generate a yield requirement, he can specifically focus on unlocking value in small and medium-sized companies, where more than half of its assets are invested.
The managers believe they can add value through thorough analysis of company balance sheets to understand a company's true, real-world assets and liabilities. They aim to identify two types of stocks: those trading below their estimate of the company's asset value, and those where the company's profit stream is being undervalued relative to the cost of capital.
Morningstar rates the managers' pedigree. While this fund has a relatively short history, its conviction has been built over a longer timeframe through Dixon's previous mandate as manager of Matterley Undervalued Assets, which he managed from launch in 2008 using the same investment approach. Barrat had assisted Dixon in managing the strategy at Matterley, so their association predates this fund.
'A highly disciplined investment process and strong execution by the managers makes this fund a compelling choice for investors,' says analyst Samuel Meakin.
The fund can also include exposure to shares listed in Europe and corporate bonds, up to a collective maximum of 20 per cent, but at the end of 2017 had just 4.5 per cent and 1.2 per cent invested in these areas.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|Royal Dutch Shell PLC Class A||3.27 %|
|Royal Dutch Shell PLC B||3.09 %|
|QinetiQ Group PLC||2.85 %|
|John Laing Group PLC||2.52 %|
|Bellway PLC||2.49 %|
|HSBC Holdings PLC||2.32 %|
|Synthomer PLC||2.28 %|
|RHI Magnesita NV Ordinary Shares||2.08 %|
|British American Tobacco PLC||2.07 %|
|Glencore PLC||2.05 %|
|United Kingdom||89.14 %|
|Financial Services||26.48 %|
|Basic materials||16.17 %|
|Consumer Cyclical||12.51 %|
|Real Estate||5.55 %|
Henry is a Portfolio Manager on the UK Equities team at Man GLG ('GLG'), having joined in October 2013. Prior to joining GLG, Henry was a Portfolio Manager and Founder of Matterley where he ran their flagship fund of the same strategy. Prior to that he worked at New Star, and The Family Charities Ethical Trust. Henry has engaged in equity investment management since 2004.
Data provided by Morningstar.
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