Man GLG Undervalued Assets Fund Professional Accumulation Shares (Class C)
Rated Fund 2018-19. Uses disciplined process to identify recovery opportunities
This fund struggled in the recent market sell-off, but it has performed strongly since its inception in 2013.
Henry Dixon and Jack Barrat, the fund’s managers since then, seek out recovery opportunities in UK stocks that are being ignored by or are out of favour with investors. Dixon manages an income version of the fund, but because the Undervalued Assets fund does not need to generate a yield, he can focus on unlocking value in small and medium-sized companies, where almost half of assets are invested.
Dixon and Barrat believe they can add value through thorough analysis of company balance sheets and determining a company’s true, real-world assets and liabilities. The managers aim to identify two types of stocks: those trading below their estimate of a company’s net asset value and those where a 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 assisted Dixon in managing 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,” says Morningstar analyst Samuel Meakin.
As well as UK stocks, the fund Royal Bank of Scotland fits the fund’s domestic focus Educational activities meet this fund’s ethical criteria can include exposure to shares listed in Europe and corporate bonds, up to a collective maximum of 20%, but at the end of 2018 it had just 3.3% and 0.32% invested in these areas.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|Rio Tinto PLC||4.17 %|
|BHP Group PLC||3.04 %|
|BP PLC||3.03 %|
|RHI Magnesita NV Ordinary Shares||2.85 %|
|Royal Dutch Shell PLC B||2.74 %|
|Bellway PLC||2.73 %|
|Total SA||2.51 %|
|HSBC Holdings PLC||2.47 %|
|St Modwen Properties PLC||2.35 %|
|British American Tobacco PLC||2.34 %|
|United Kingdom||86.24 %|
|Financial Services||21.84 %|
|Basic materials||21.54 %|
|Consumer Cyclical||12.21 %|
|Consumer Defensive||7.09 %|
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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