CFP SDL Free Spirit Fund Factsheet - December 2019
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CFP SDL Free Spirit Fund Factsheet - December 2019 Fund Information Fund Objective and Strategy Fund Managers: The investment objective of the fund is to seek to maximise total returns over the long term, defined as five to ten years. The fund will invest mainly in a portfolio of UK equities listed on the LSE or quoted on AIM/ISDX, with an emphasis on small and mid-capitalised companies. It may also invest in other transferable securities, money market instruments, units and/or shares in other collective investment schemes, deposits, warrants, cash and near cash. The manager will follow the methodology of Business Perspective Investing and it is expected that the portfolio will contain between 25 and 40 holdings when fully invested. Andrew Vaughan Keith Ashworth-Lord Number of Holdings: Launch Date: 25 3rd January 2017 Sector: Fund Size: IA UK All Companies £7.46m ACD: Castlefield Fund Partners Limited Platform Availability: Alliance Trust, AJ Bell, Ascentric, Aviva, CoFunds, Hargreaves Lansdown, Novia, Transact, Zurich A - CFP SDL Free Spirit Acc GBP in GB {38.64%} B - IA UK All Companies TR in GB {18.49%} 03/01/2017 - 30/11/2019 Data from FE 2019 Share Class Information Cumulative Performance (%) Share Class Income Accumulation 1 Mth 3 Mths 6 Mths 1 Yr Since Launch Min. £500 £500 Free Spirit Fund 7.22 8.93 6.45 18.29 38.64 Investment Sector 3.57 6.02 6.89 12.41 18.43 Initial Charge 0.00% 0.00% Rank 9/260 46/258 145/258 35/256 14/246 Investment 0.90% 0.90% Quartile 1 1 3 1 1 Adviser Fee Ongoing 1.46% 1.46% Discrete Performance (%) Charge 2019 YTD 2018 2017* 2016 2015 Payment 30th April/ 31st 30th April/ 31st Dates October October Free Spirit Fund 23.81 -5.44 18.42 - - ISA Eligible YES YES Sector 17.89 -11.19 13.17 - - Rank 41/257 17/255 38/247 - - ISIN GB00BYYQC495 GB00BYYQC271 Quartile 1 1 1 - - CITI CODE NPFA NPFB Discrete Year to Quarter End Performance (%) Q3 2018 Q3 2017 Q3 2016 Q3 2015 Q3 2014 MEXID CFXYA CFXYB Q3 2019 Q3 2018 Q3 2017 Q3 2016 Q3 2015 Free Spirit Fund -0.90 17.13 - - - Source: Financial Express. as at 30/11/2019 Past Performance is not a guide to future performance. Investment in the fund carries the risk of potential loss of capital. *Performance measured from fund launch date of 03/01/17 RGFREEFS/051219 1 Fund Commentary The price of the fund's accumulation units rose by 7.22% in November, compared with a rise of 1.83% for the wider UK stock market. Of the fund's 25 holdings, 18 advanced (including 9 double-digit % gainers), 6 fell (the largest - EKF Diagnostics Holdings - by just 5.8%) and one was unchanged. It was a busy month for company reporting and most of the major moves reflected company results or trading updates. Leading the gainers were Games Workshop (+29.1%), Morgan Advanced Materials (+21.0%) and Diploma (+18.0%). Games Workshop reported royalty income running significantly ahead of the prior year, a source of income which has almost no costs attached and therefore boosts profitability. Morgan Advanced Materials reported further expansion of its operating margin. It has been labouring under difficult market conditions in the automotive sector but offset this with growth in other sectors such as semiconductors, healthcare and chemicals. This more positive tone in industrials was also reflected in share price moves of the fund's holdings in Trifast (+8.5%) and Victrex (+8.9%). Likewise, Diploma reported revenue growth across all three of its business segments (life sciences, seals, and controls). Diploma increased its operating margin and raised the annual dividend by 14%. Businesses with a domestic UK focus came back into favour after many months in the wilderness. They are a pillar of the portfolio's construction alongside the more internationally orientated businesses which have been driving performance during bouts of UK currency weakness. The fund's holdings here include Mortgage Advice Bureau (+16.9% this month) and Tatton Asset Management (+16.2%). There was no trading news from Mortgage Advice Bureau, but Tatton reported 22.8% growth in assets under management and a 14.3% increase in the interim dividend. We always look beyond the fund's holdings at companies in the same or an adjacent space. In this regard, we attended an event on kidney health at which the CEO of Renalytix AI plc, James McCullough, presented alongside several senior US-based experts in this field. It is an exciting area for healthcare advances and investment. The fund has an interest via its holding in EKF, from which Renalytix was spun-off last year while retaining a stake. Other portfolio news included a £100m share buy-back from SSP (+10.8% this month) and a 30% increase in the dividend from Avon Rubber (+10.7%). There were no new additions to or disposals from the portfolio in November. Cash stood at 14.2% at the month-end. Source: Sanford DeLand 4th December 2019 Sector Allocation Top Ten Holdings 1. CLS Holdings 5.12% 2. Games Workshop 4.92% 3. Diploma 4.70% 4. Bloomsbury Publishing 4.27% 5. Morgan Advanced Materials 4.25% 6. RELX 4.23% 7. EKF Diagnostics 3.99% 8. Unilever 3.93% 9. Avon Rubber 3.84% 10. Kainos Group 3.84% Fund Manager Contact Information Andrew Vaughan Castlefield Fund Partners The fund manager has over 20 years' investment research experience, with a long track record of selecting 111 Piccadilly, Manchester, Ml 2HY successful business perspective investments. Following a background in accountancy, Andrew held a variety of Dealing Information: 0345 026 4284 equity research and sales roles in London and the Far East, joining Keith Ashworth-Lord in 2005 as part of the team producing the "Analyst" research publication. He subsequently joined Sanford DeLand in 2017. A graduate General Enquiries: 0161 233 4890 with a BSc. (Econ) degree in Accounting & Financial Management from the University of Buckingham, Andrew E: [email protected] also holds ICAEW PE1, the Investment Management Certificate (IMC) and CFA Level 1. W: www.castlefield.com Keith Ashworth-Lord The fund manager has over 30 years of equity market experience and is a seasoned practitioner of ‘Business Perspective Investing’ as championed by Ben Graham and Warren Buffett. Prior to founding Sanford DeLand Asset Management, Keith worked with a variety of stockbroking, fund management and private investor clients. Keith is a graduate of Natural Sciences with a Masters in Management Studies and is a Chartered Fellow of the Chartered Institute of Securities & Investment. In 2017, Keith was conferred with Alpha Manager status by FE Trustnet. Important Information This document provides information about the CFP SDL Free Spirit Fund (the Fund). Castlefield Fund Partners Limited (CFP) is the Authorised C A S T Corporate Director (ACD) of the Fund and Castlefield Investment Partners LLP (CIP) is the appointed Investment Adviser. Both CFP and CIP are LEF I authorised and regulated by the Financial Conduct Authority. Keith Ashworth-Lord, a director of Sanford DeLand Asset Management Limited (SDL), and Andrew Vaughan are an Approved Person of CIP for the purposes of acting as the lead day-to-day managers of the Fund. SDL is an appointed ELD representative of CIP. This document does not constitute or form part of and should not be construed as, an initiation to buy or sell shares in the Fund and neither this document nor anything contained or referred to in it shall form the basis of, or be relied on in connection with, any offer or commitment whatsoever. The value of shares and the income generated from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally subscribed. Equity investments should always be considered as long term. Investors should not purchase shares in the Fund except on the basis of information contained in the Fund’s Prospectus. We recommend that investors who are not professional investors should contact their professional adviser. The Fund’s Prospectus and Key Investor Information Document (KIID) are available from www.castlefield.com or direct from Castlefield. RGFREEFS/051219 2.