Factsheet: Old Mutual UK Dynamic Eq R GBP Inc
Rated Fund 2016-2018. Can offer some protection against a market correction
Old Mutual UK Dynamic Equity was highly commended in the Larger UK Growth Fund category of Money Observer's fund awards in both 2016 and 2017.
Managed by Luke Kerr since 2009, it targets capital growth through investment in small and medium-sized UK companies. Kerr looks for strong, fast-growing companies whose shares he expects to rise in price, but he can also 'short' stocks he believes are going down in price. This gives the fund an advantage in volatile market conditions.
Kerr says the difference between his fund and traditional funds is that while others are typically 90-100 per cent invested in shares, he can have as little as 60 per cent invested, with the remainder in cash.
He can then use up to 30 per cent of the fund to take short positions in stocks that he thinks will fall in price and thereby provide him with a positive return. This means that the fund can be anywhere between 30 and 100 per cent exposed to equities.
So if he believes the market will go up, the fund will behave much like a traditional fund and have little or nothing in short positions; if he believes it will go down, he can materially reduce the fund's downside in a significant market correction.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|Just Eat PLC||7.01 %|
|Paysafe Group PLC||6.99 %|
|Melrose Industries PLC||5.18 %|
|Ascential PLC||4.92 %|
|Micro Focus International PLC||4.73 %|
|boohoo.com PLC||4.26 %|
|RPC Group PLC||3.73 %|
|JD Sports Fashion PLC||3.27 %|
|Fevertree Drinks PLC||3.25 %|
|St James's Place PLC||2.96 %|
|United Kingdom||100.00 %|
|Consumer Cyclical||25.58 %|
|Financial Services||12.98 %|
|Consumer Defensive||5.52 %|
Data provided by Morningstar.
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