Spectrum Fund

The investment objective of the Spectrum Fund is to seek to achieve capital growth over the longer term (5-7 years).

The Fund is a fund of funds and its investment policy is to invest at least 70% of the fund’s assets globally in collective investment schemes, which may be open-ended or closed-ended and/or other investment funds such as investment trusts.

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 01/12/2021
Accumulation Shares
Income Shares
277.38p
Fund Size
£145m (31/10/21)

Past performance is not a guide to future performance.

October 2021

Your Fund returned +2.6% during the month compared to a return of +0.8% for the IA Flexible Investment (TR).

Pershing Square Holdings (PSH), one of Spectrum’s constituents, has performed well over the last few weeks, with its shares increasing +10.7% in October alone.  Having agreed to buy a stake in Universal Music Group (UMG) before it demerged from its parent company, Vivendi, PSH has benefited from a strong re-rating of UMG’s shares following UMG’s public market debut in September.

In many respects, UMG is a good example of the type of business in which Pershing Square seeks to invest.  UMG has a simple, predictable and cash-generative business, underpinned by a high-quality catalogue of music rights and partnerships with many of the world’s most popular artists.  We believe that UMG’s revenues and profits should increase at a healthy rate over time as music streaming continues to grow and as music itself becomes more ubiquitous.  One only need look at the increasing use of music on TikTok, Peloton and other growing platforms to recognise the value of UMG’s royalty business model.

Despite strong growth in PSH’s underlying holdings this year, its shares continue to trade at a substantial discount to PSH’s net asset value (NAV).  In a market where many assets seem to attract premium ratings, it is anomalous to access a collection of high-quality businesses including UMG at a -27% discount to their NAV.  PSH also enjoys inflation-protection (purchased via derivatives contracts), providing reassurance that PSH can navigate choppier markets in an inflationary environment.


 

Source: Lipper, Link Fund Solutions Limited

 

Total Return 29/02/2008
Since Launch
31/10/2011
10 Years
31/10/2016
5 Years
31/10/2018
3 Years
31/10/2020
1 Year
30/04/2021
6 Months
Spectrum O Acc +191.7% +117.6% +47.6% +36.0% +21.0% +5.9%
Bank of England Base Rate +10.6% +4.5% +2.0% +1.2% +0.1% +0.1%
IA Flexible Investment TR +123.4% +111.3% +41.6% +30.7% +21.0% +4.0%
UK Retail Price Index +46.0% +29.7% +16.5% +8.5% +4.9% +2.5%
Discrete Calendar Annual Returns (%) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Spectrum O Acc -3.0% +19.2% +17.8% -3.5% +6.4% +3.5% +7.4% +5.2% +19.6% +10.4% -3.3% +16.5% +5.8% +13.3%

Performance is calculated on a total return basis, net of fees, in sterling terms.

Source: Lipper, Link Fund Solutions Limited. Since Launch (29/02/2008) to 31 October 2021.

Source: Lipper, Link Fund Solutions Limited

 

Risk Analysis Since Launch (29/02/2008) Spectrum O Acc IA Flexible Investment TR
Total Return +191.7% +123.4%
Max Drawdown -19.1% -33.4%
Best Month +8.4% +7.4%
Worst Month -11.5% -12.9%
Positive Months +63.4% +62.2%
Annualised Volatility +9.6% +11.0%

Performance is calculated on a total return basis, net of fees, in sterling terms.

Maximum Drawdown measures the worst investment period

Annualised Volatility is measured by the annualised standard deviation of the monthly returns 

Source: Lipper, Link Fund Solutions Limited.  

Top 10 holdings (excluding government bonds) Fund %
Egerton Capital Equity 13.5
Findlay Park American 10.1
Polar Capital Global Insurance 8.7
WCM Global Equity 7.8
Columbus Point Global Equity 7.5
AMP Capital Global Equity 7.4
Samarang Asian Prosperity 6.7
Pershing Square Holdings 6.4
Jupiter Global Equity Growth 6.1
HAL Trust 4.4
Total Top 10 78.6
9 other holdings 20.7
Cash 0.7
Total 100.0

 

Past performance is not necessarily a guide to future performance. The value of a fund and any income from it may go down as well as up and investors may get back less than they invested. Changes in rates of exchange may cause the value of investments to go up or down. Returns may increase or decrease as a result of currency fluctuations​. This data is provided for information only and should not be reproduced, published or disseminated in any manner. Although Troy considers the data to be reliable, no warranty is given as to its accuracy or completeness. Any comparisons against indices are for illustrative purposes only.

How to Invest

You may invest directly, via a broker or adviser, or through a number of online fund platforms.

How to Invest