LIBERO STRATEGIC FUND - 'A' SHARE CLASS
FACTSHEET - January 2015
Registered in England Number 01923571. Registered Office: One Kingsway, London WC2B 6AN
INVESTMENT PROCESS
OBJECTIVE
Quilter Cheviot’s investment process combines strong disciplines with customised,
flexible asset allocation and stock selection. Our approach is a combination of
‘bottom-up’ and ‘top-down’ analysis. We are not constrained by one particular
investment style (such as growth, value etc.) and believe the best returns come
from a flexible approach during different economic cycles. We aim to reflect our
views on asset class and geographical allocation through the portfolio and support
these with conviction ideas. To select our holdings we use a combination of
quantitative analysis, in-house fundamental research and company visits. When
selecting collective funds we insist on face-to-face meetings with all managers
with whom we plan to invest and submit them to a rigorous due diligence process.
Once invested we monitor and review performance on an on-going basis.
The Strategic Fund aims to achieve capital growth
over the medium term, focusing on capital protection
as well as capital appreciation.The Strategic Fund
aims to be more stable than the average Growth fund
and aims to have a lower volatility than the
benchmark for this sector, which is the Growth
Benchmark set by the Wealth Management
Association.
MARKET COMMENTARY
The last month of the year turned out to
be particularly volatile as investors
grappled with the implications of lower
oil prices. Although equities ended
down in December, Strategic delivered
a return of +0.23%. For the year as a
whole the return was +4.06%, well
ahead of, for example, UK equities,
deposit rates and inflation.
Diversification continued to pay off.
Fixed interest, which accounts for
nearly 20% of the total, added value
with gilts leading the way. Longer dated
stocks, in particular, attracted buyers
seeking security of income and capital
during a period of uncertainty. The fund
was well placed to benefit from this
flight to quality.
The equities held were not entirely
immune from declining indices, but
good returns were made in both the US
and Japan. UK equities outperformed a
falling market with DS Smith, Hays and
Kingfisher all making a positive return.
Action was taken to reduce exposure to
oil through partial sales of BP and BG,
in favour of BT which combines the
benefits of a utility with growth
potential.
Alternative investments once again
made a positive return. The hedge
fund, Aspect Diversified performed
particularly well as did Electra Private
Equity.
Volatile markets tested the diversified
structure of Strategic several times
over the last 12, but overall our
strategy delivered a positive return.
The fund is well placed to benefit from
a further period of modest economic
growth, low inflation and low interest
rates.
ASSET ALLOCATION
Shire - Following the failed AbbVie
deal, we took advantage of share price
weakness to make an investment in
Shire. Historically mid-sized
pharmaceutical company Shire had an
over reliance on Adderall XR, its
attention deficit disorder (ADHD) drug.
Through a series of good acquisitions
and licensing agreements Chairman
Matthew Emmens has reinvigorated
the product pipeline. Shire now has a
more diversified portfolio of new
products. 2/3rd are new drugs in niche
therapies, with good patent lives,
excellent pricing and strong sales
growth. Overall we like the strong
innovative pipeline at Shire which is
creating future sales growth, which is
key for Pharma companies. The New
CEO has started to implement change
at the firm and should this should lead
to material cost savings over the next
two years.
As at 31 December 2014
GS US Equity Fund
3.90
Direct Line Insurance – Operatesan
investment holding company with
interests in providing general insurance
services. We see Direct Line as a good
way to build exposure to the potential
of a hardening motor insurance market,
as it provides a safety cushion in the
form of potential greater cost efficiency.
Given our view that expectations are
too low and that the stock is
inexpensive, we think that this stock
will out-perform the sector. The stock
yields 5% on an normal dividend basis
and around 15% including the special
dividend.
2.25% GILT 2023
3.80
Brown Advisory US Equity Value Fund
2.90
J O Hambro Continental Europe Fund
2.70
Henderson European Special Situations
Fund
2.70
Gold ETF (USD)
2.60
Electra Private Equity
2.50
Aspect Diversified Trends
2.40
M&G Optimal Income Fund
2.30
United Kingdom 33.47%
Emerging Markets 2.20%
North America 12.02%
Fixed Interest 19.04%
Europe ex. UK 5.31%
Cash 4.61%
Japan 3.51%
Alternatives 17.84%
Far East ex. Japan 2.00%
TOP 10 HOLDINGS
0.125% Index-linked 2024
Total Top 10
%
2.10
27.90%
References to specific securities are
not recommendations to buy or sell
those securities.
INVESTMENT THEMES
IMPORTANT: The value of investments and the income from them can go down as well as up. You may not recover what you invest.
1
LIBERO STRATEGIC FUND - 'A' SHARE CLASS
STRATEGY MANAGERS
Cumulative performance (%) to 31 December 2014
1m
6m
1yr
3yr
Since Launch **
Libero Strategic Fund - A Accumulation
0.23
3.37
4.06
23.22
19.72
Discrete performance (%) to 31 December
2014
2013
2012
2011
2010
Libero Strategic Fund - A Accumulation
4.06
9.73
7.91
-
-
David Miller
Fund Manager
Past performance is not a guide to future performance and future returns are not guaranteed. Source: Financial
Express 31/12/2014
** Share class A was launched on the 04/01/2011 at 107.58p
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
YTD
2011
-0.88
0.84
0.59
1.39
-0.4
-0.74
-0.19
-4.27
-2.25
4.57
-2.35
1.55
-1.61
2012
2.63
3.24
-0.92
-1.07
-3.22
1.81
2.21
1.13
0.77
0.23
0.61
0.39
7.91
2013
4.39
1.45
1.59
-0.7
1.57
-4.11
3.61
-1.43
0.08
3.17
-0.57
0.59
9.73
2014
-2.41
2.98
-0.80
0.57
1.29
-0.88
-0.24
1.45
1.35
-0.24
3.55
0.23
4.06
Source:Financial Express 31/12/2014 Quilter Cheviot A Accumulation share class performance, inclusive of charges, in GBP
with net income reinvested. The performance of other share classes may differ.
Past performance is not a guide to future performance and future returns are not guaranteed. Libero Strategic Fund
Class ‘A’ Accumulation shares were first made available on 04/01/2011 at 107.58p.
FUND DATA - 'A' Share Class
INVESTMENT PARTNERS
After graduating from
Cambridge in 1980 with
a degree in natural
sciences, David began
his investment career as
a stockbroker at
Sheppards and Chase, before moving to Fleming
Private Asset Management where he was a
member of the executive committee, chairman of
the strategy and stock selection committees and
head of charities. Following the takeover of
Flemings in 2000, David became managing
director and head of the UK private client
investment team at JP Morgan Private Bank
before moving to the Royal Bank of Canada to
run the British Isles investment business. David
joined the company in 2007.
Karl Williamson,
CFA
Karl graduated from LSE
with a BSc in economics
in 2002. He started his
career in Amsterdam
with market maker Mako
Global Derivatives
before moving back to London to make markets
in various equity and fixed income products. In
2008 Karl moved to Quilter Cheviot, where he
manages portfolios on behalf of individuals, trusts
and charities. He is a Member of the Chartered
Securities Institute (MCSI).
Launch Date
02 August 2010
Launch Price
100.00p
Current Price
128.80p Acc
128.80p Inc
Fund Size
£ 8,823,943.21
Fund Structure
OEIC/UCITS III
ISAs/SIPPs/SASSs
Eligible
Base Currency
GBP
Minimum Investment
£1,000/£100
Dealing Schedule
Daily at 12.00pm
QUILTER CHEVIOT
Benchmark
FTSE World Ex UK (GBP) 18.75%, FTSE
UK AllShare (GBP) 31.25%, FTSE UK
Gilts All 15.00%, Global Listed Private
Equity 5.00%, GBP Cash Capital Return
10.00%, Dow Jones UBS Commodity
Index 5.00%, HFRI Fund Weighted
Composite (GBP) 15.00%
Historic Yield
0.43%
Initial fee
5.00%
Annual Management
Charge
1.50%
Ongoing Charges
2.49%
Quilter Cheviot is one of the UK’s largest
independently owned discretionary
investment firms, which can trace its
heritage to 1771. The firm is based in
thirteen locations across the UK, Jersey
and Ireland and has total assets under
management of £16.7bn (as at 31
December 2014). Quilter Cheviot focuses
primarily on structuring and managing
bespoke discretionary portfolios for
private clients, charities, trusts, pension
funds and intermediaries.
Ex Dividend Dates
1 January & 1 July
Dividend Pay Dates
30 April & 31 October
Sedol Number
B4PYRV4 Acc
B4P9Z82 Inc
CONTACT DETAILS
Quilter Cheviot
One Kingsway
London WC2B 6AN
You can also invest in this fund
via one of our wide range of
Investment Partners.
How to Invest
e: [email protected]
Quilter Cheviot: 020 7150 4000
Thesis Unit Trust Management Ltd
0870 8708434
Risk Warning: The value of investments and the income from them can go down as well as up. You may not recover what you invest.
There are risks involved with this type ofinvestment. Please refer to the Prospectus, Key Investor Information documents for further
details, available free of charge from the Authorised Corporate Director ('ACD') Thesis Unit Trust Management Ltd, Exchange Building,
St Johns Street, Chichester, West Sussex, PO19 1UP. Important Information: This document is for general information purposes only
and does not take into account the specific investment objectives, financial situation or individual requirements of any particular person.
It is not a personal recommendation and it should not be regarded as a solicitation or an offer to buy or sell any securities or instruments
mentioned in it. Quilter Cheviot recomends that potential investors independently evaluate investments, and encourages investors to
seek the advice of a financial advisor. Unlessotherwise stated, all statistics have been supplied by Quilter Cheviot. Libero Strategic is a
sub-fund of the Libero Portfolio Fund which is an open ended investment company authorised and regulated by the Financial Conduct
Authority. Whilst we believe the facts to be correct, we cannot assume liability for any errors or omissions. Quilter Cheviot Limited is
registered in England with number 01923571, registered office at One Kingsway, London WC2B 6AN. Quilter Cheviot Limited is a
member of the London Stock Exchange and authorised and regulated by the UK Financial Conduct Authority.
2