The investment objective of the Spectrum Fund is to produce long-term capital growth. The Fund’s investment policy is to diversify investment predominantly in collective investment schemes, though the Fund may be invested in bonds, equities, cash and other eligible instruments from time to time. The Spectrum Fund may invest up to 100% of its assets in collective investment schemes.
In addition to the O share class referred to on this page, I Classes are also available. Please contact us for more information.
|'O' Share Class||Price 08/12/2016|
Your Fund returned +2.6% during the month compared to +4.3% for the MSCI World Index (£).
Following a prolonged period of weak performance, many investors have started to reappraise the prospects for emerging market equities. Edward Lam, manager of the Somerset Emerging Market Dividend Growth Fund (one of Spectrum’s holdings), is amongst those who have become more positive. Higher interest rates in the US may lead to greater volatility. However, Somerset feel that many emerging markets are now better placed than they were in 2013, when a sharp increase in US long-term yields led to significant capital outflows. One example is Brazil. The Brazilian real has weakened considerably over the last few years, making Brazil’s economy more competitive, whilst interest rates have doubled to 14%, providing policy makers with greater room to act.
Nevertheless a number of risks remain. A stronger US dollar will inevitably create strains, especially for those countries with excessive $-denominated debt. Moreover, China’s non-performing loans are likely to be far higher than stated and the country’s structural financial problems have the potential to weigh heavily on the global economy. In addition, whereas valuations of companies such as Petrobras have fallen steeply in recent years, those of the best quality businesses remain elevated. Consumer staples including Hindustan Unilever, for instance, trade at a premium to their developed market peers.
We believe selective emerging market exposure provides valuable diversification to the Spectrum Fund. Rather than treat emerging markets as a homogenous bloc, Edward Lam and Spectrum’s other managers cast a more discerning eye. They focus on fundamentals, investing in companies that offer a sensible balance between quality, value, and sustainable growth.
Source: Lipper, Capita Asset Services
The source for performance data has been changed. This change may have resulted in variations from previously published performance figures. These variations are deemed to be immaterial both individually and cumulatively.
|Total Return to 31 October 2016||29/02/08|
|LIBID* GBP 1 Month||+8.3%||+2.0%||+1.1%||+0.3%||+0.1%|
|IA Flexible Investment||+57.7%||+49.2%||+22.1%||+14.3%||+13.4%|
|MSCI World NR (£)||+128.1%||+103.7%||+47.3%||+28.0%||+22.7%|
* London Inter Bank Bid Rate
Annual Returns (%)
# ￼￼From launch (29/02/08)
Source: Lipper, Capita Asset Services
The source of performance data has been changed. This change may have resulted in variations from previously published performance figures.
|Risk Analysis Since Launch (29/02/2008)||Fund||IA||MSCI|
*￼Measures the worst investment period
|Top 10 Holdings||Fund (%)|
|Egerton Capital Equity||6.8|
|Morant Wright Sakura Hedged||5.9|
|Findlay Park American||5.5|
|Yacktman US Equity||5.5|
|CG Portfolio Real Return||5.5|
|Polar Capital Global Insurance||5.1|
|Odey Allegra Developed Mkts||5.0|
|Lindsell Train Japanese Equity||4.9|
|Blackrock Gold & General||4.8|
|Total Top 10||54.6|
|13 other holdings||40.1|
|Cash & equivalent||5.3|
How to Invest
You may invest directly, via a broker or adviser, or through a number of online fund platforms.
- Fund Manager
- Inception Date
- Available Share Class
O & I
- ISIN (O Class)
- Bloomberg (O Class)
- Sedol (O Class)