Unicorn Mastertrust B Inc
Mixed Asset 61-100% Equity
New for 2018. Takes a contrarian approach to investment trusts
Unicorn Mastertrust is run by Peter Walls, a specialist in investment trusts. It is a newcomer to the Rated Funds list for 2018 on the strength of its performance and contrarian nature.
Walls invests in a wide range of investment trusts, seeking to take advantage of what he calls 'pricing anomalies'. Closed-ended funds can trade at either a premium or discount to their net asset value, and it is these discounts that Walls aims to exploit.
In the fund's 2017 interim report, Unicorn pointed to average discounts narrowing considerably, from around 9 per cent in the wake of the EU referendum in mid 2016 to less than 4 per cent by March 2017. Although rising equity markets undoubtedly contributed towards this trend, the report highlighted growing demand for investment trust shares as another factor. New issues of conventional investment trusts remain thin on the ground, while demand is rising as appreciation of the long-term attractions of the closed-ended structure become more widespread.Mastertrust's holdings in listed private equity trusts HarbourVest Global Private Equity and Standard Life Private Equity have benefited from a strong market for realisations and narrowing discounts. Holdings in Fidelity Asian Values, Monks, BlackRock World Mining and Polar Capital Global Financials have also driven recent strong performance. Standard Life Private Equity, Monks and BlackRock World Mining are also Rated Funds.
At the end of 2017, the fund was 83 per cent invested, with the balance in cash. It held 54 investment trusts. Its ongoing charges are a relatively reasonable 0.85 per cent.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|Alliance Trust Ord||2.88 %|
|British Empire Ord||2.48 %|
|F&C Investment Trust Ord||2.42 %|
|TR Property Ord||2.40 %|
|Caledonia Investments Ord||2.39 %|
|Aberforth Smaller Companies Ord||2.28 %|
|BlackRock World Mining Trust plc||2.23 %|
|Hansa Trust 'A' Class A||2.16 %|
|Acorn Income Fund Ord||2.14 %|
|Law Debenture Corporation Ord||2.13 %|
|United Kingdom||39.50 %|
|United States||11.37 %|
|Asia - Emerging||9.60 %|
|Asia - Developed||8.06 %|
|Financial Services||18.69 %|
|Consumer Cyclical||13.80 %|
|Basic materials||10.29 %|
|Consumer Defensive||5.40 %|
Data provided by Morningstar.
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