Fund Fact Sheet
UK Income
Opportunities Fund
31 July 2016
FUND OBJECTIVE
FUND FACTS
The investment objective of the Fund is to generate income and target capital growth over the longer term.
The Fund's investment objective will be achieved through long-only investment primarily in equity securities
of companies listed on the London Stock Exchange which have a market capitalization in excess of £100
million. Please refer to the Fund’s Prospectus for full details.
FUND MANAGERS
INVESTMENT APPROACH
Tom Carroll - Since 22 December 2015
Chris Rodgers - Since 22 December 2015
Alex Schlich – Since 22 December 2015
BENCHMARK
Sanlam FOUR’s UK team employs an active, conviction-driven management style. Key to the Fund is its
focus on identifying growing companies, with competitive franchises and strong cash generation, that are
paying and can grow their dividend. When focusing on a company, the team will undertake intensive
research to establish the true worth of the business, what we call its Intrinsic Value. This process normally
includes meeting the senior management of the companies we invest in. The team will take high conviction
positions in those opportunities where they have identified the potential for significant upside to current share
prices. Although the team will give consideration to the macroeconomic backdrop, emphasis is very much on
building a portfolio of outstanding companies from a bottom up basis.
.
FTSE All-Share Index
MARKET CAPITALISATION
STRATEGY AUM
LAUNCH DATE
22 December 2015
FUND SIZE
£0.8m
£0.8m
11.7%
Other
NUMBER OF HOLDINGS
0.0%
31
ACTIVE SHARE
10.9%
FTSE Small Cap
3.4%
89.1%
YIELD
5.6%
40.4%
FTSE 250
15.8%
DOMICILE
37.0%
FTSE 100
Dublin, Ireland
80.8%
0%
20%
40%
60%
80%
100%
BASE CURRENCY
Sterling
Sanlam FOUR UK Income Opportunities Fund
FTSE All-Share Index
FUND TYPE
Sources for data: Sanlam FOUR, Bloomberg, FTSE
OEIC, UCITS IV
MONTHLY COMMENTARY
MORNINGSTAR CATEGORY
After a very volatile June which was dominated by the shock referendum result on the 23rd, the FTSE-All
share index experienced a much calmer July, rising steadily through the month. Dollar earning stocks
continued the strong performance they had registered post Brexit and the mid cap index also outperformed
the FTSE100 names reversing some of the underperformance seen in the previous month. The result was a
big shock and this has led to increased uncertainty and caution, however market participants are learning to
accept the new environment. There will be a negative impact, at least in the short term, on the economy but
the extent of the impact and the slowdown is far from certain. Many of the UK domestic stocks have
already priced in a level of recession which may be unduly cautious. In a wider context the uncertainty in
the UK economy has come at a time when prospects in the global economy were starting to improve. The
US Federal Open Market Committee has upgraded their assessment of the US economy and in China
concerns about growth and possible currency devaluation are starting to recede.
UK Large-Cap Blend Equity
The fund outperformed in the month with positive contributions from both sector allocation and stock
selection. The fund was overweight Consumer Services which performed very well, and strong stock
selection in Consumer Goods also contributed positively. The main negative contributor was our
underweight position in Technology and specifically not holding ARM which rose significantly after an
agreed takeover. Our Financials position also counted against us as the stocks underperformed.
DISTRIBUTION FREQUENCY
During the month we continued our post Brexit repositioning by selling out of Greene King, Photo-Me and
Close Brothers and reducing our position in Lloyds. We added a new holding in PLUS 500 and also topped
up existing positions in BT, Prudential, BBA, BP and Crest Nicholson. The UK economy is facing higher
levels of uncertainty and we anticipate slower levels of growth in the short term but remain cautiously
optimistic on the investment outlook. We are confident the holdings in the fund will continue to deliver good
dividend returns to investors and have the prospect of above average dividend growth.
DEALING DEADLINE
11:00 (GMT)
SETTLEMENT TIME
T+3
VALUATION POINT
Midday (GMT)
Quarterly
The Yield, as it is based on 12m future estimations,
is provided as a guide and should not be taken as a
guaranteed yield. This forecast is not a reliable
indicator of future performance. Fund size figure
relates to total fund assets inclusive of all share
classes of the fund.
Past performance is not a guide to future performance. Performance is net of fees. The market value of, and the income derived from, the shares of the Fund
may fluctuate in accordance with: the values of the investments held by the Fund and other market conditions. Investors may not get back the full value of their
investment. There can be no guarantee that the investment objectives of the Fund will be met. There will be times when the Fund’s investment performance will be
quite unlike that of any stock market index, which may or may not be to the advantage of the Fund. This report does not constitute an offer, invitation or solicitation.
The information and opinions contained in this report are subject to change without notice. This report has been issued and approved by Sanlam FOUR. Please note
that the fund performance is from 12 noon to 12 noon, whilst index performance is close of business to close of business. Changes in exchange rates may have an
adverse effect on the value price or income of the product. Investment in this Fund should be viewed as medium to long term. Sources for data: Sanlam FOUR,
FTSE, SAMI
Fund Fact Sheet
UK Income
Opportunities Fund
31 July 2016
FUND INFORMATION AND CHARGES
Inception Date
ISIN
Bloomberg ticker
SEDOL
22/12/2015
22/12/2015
22/12/2015
22/12/2015
22/12/2015
22/12/2015
IE00BYV2N143
IE00BYV2N473
IE00BYV2N259
IE00BYV2N580
IE00BYV2N366
IE00BYV2N697
SAUIAAG
SAUIADG
SAUIBAG
SAUIBDG
SAUIFAG
SAUIFDG
BYV2N14
BYV2N47
BYV2N25
BYV2N58
BYV2N36
BYV2N69
A Accumulation Sterling
A Distribution Sterling
B Accumulation Sterling
B Distribution Sterling
Founder Accumulation Sterling
Founder Distribution Sterling
Initial Charge
AMC
OCF
Price
Minimum
investment
Type of Share
A Accumulation Sterling
None
0.75%
1.25%
8.9616
£1,000
Accumulation
A Distribution Sterling
None
0.75%
1.25%
8.7491
£1,000
Income
B Accumulation Sterling
Up to 5%
0.00%
0.50%
8.9871
£1,000
Accumulation
B Distribution Sterling
Up to 5%
0.00%
0.50%
8.7754
£1,000
Income
Founder Accumulation Sterling
Up to 5%
0.40%
0.90%
8.9784
£100,000
Accumulation
Founder Distribution Sterling
Up to 5%
0.40%
0.90%
8.7562
£100,000
Income
TOP 10 POSITIONS
SECTOR BREAKDOWN
8.8%
Oil & Gas
11.4%
0.0%
Basic Materials
5.8%
13.4%
10.5%
11.3%
17.4%
Industrials
Consumer Goods
0.0%
Health Care
10.1%
24.9%
Consumer Services
11.3%
7.2%
Telecommunications
4.7%
0.0%
Utilities
4.0%
30.1%
Financials
Technology
Other
Cash
22.7%
5%
Crest Nicholson Holdings
5.5
ITV
5.3
OneSavings Bank
5.1
Legal & General Group
4.9
BP
4.6
TUI
4.4
Prudential
4.3
BT Group
4.2
John Laing Group
Conviviality
3.7
3.6
Sources for data: Sanlam FOUR, Bloomberg, Beauchamp
2.4%
2.0%
0.0%
0.0%
2.0%
0.0%
0%
Weight %
IMPORTANT INFORMATION
10%
15%
20%
25%
30%
35%
Investment in Class B requires a separate investment management agreement
with the investment manager.
% Weight
Sanlam FOUR UK Income Opportunities Fund
FTSE All Share
Sources for data: Sanlam FOUR, Bloomberg, MSCI
CONTACT DETAILS
Tel: +44 20 3116 4000
Email: [email protected]
Address: 1 Ely Place, London, EC1N 6RY
Website: www.sanlamfour.com
Sanlam FOUR is a limited liability company incorporated in England & Wales with registered number 5809399 and having its registered office at 1 Ely Place,
London EC1N 6RY. Sanlam FOUR is authorised and regulated by the Financial Conduct Authority. The Fund is a sub-fund of Sanlam Universal Funds plc, an
open-ended umbrella type investment company, with segregated liability between it’s sub-funds, authorised by the Central Bank of Ireland as an Undertaking for
Collective Investments in Transferable Securities (UCITS). The Sanlam Universal Funds Plc full prospectus, the Fund supplement and Key Investor Information
document (KIID) is available in English and free of charge from the Manager, the Investment Manager or at www.sanlam.ie. Sources for data: Sanlam FOUR,
FTSE, SAMI