MFM SGWM OEIC. Interim Reports For the six month period ended 30 th November 2014 (Unaudited)

Transcription

1 Interim Reports For the six month period ended 30 th November 2014 (Unaudited)

2 Fund Details Registered Office Marlborough House 59 Chorley New Road Bolton BL1 4QP Authorised Corporate Director and Registrar Marlborough Fund Managers Ltd Marlborough House 59 Chorley New Road Bolton BL1 4QP Authorised and regulated by the Financial Conduct Authority Customer Support: (0808) (FREEPHONE) Intermediary Support: (0808) (FREEPHONE) Dealing: (0808) (FREEPHONE) Fax: (01204) Depositary: HSBC Bank plc 8 Canada Square London E14 5HQ Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Investment Adviser: A S G Wealth Management Limited St Martin s Lane Norwich NR3 3SA Authorised and regulated by the Financial Conduct Authority Auditors: Barlow Andrews LLP Carlyle House 78 Chorley New Road Bolton BL1 4BY

3 CONTENTS PAGE AUTHORISED STATUS AND GENERAL INFORMATION 1 AUTHORISED CORPORATE DIRECTOR S STATEMENT 2 MFM SGWM Managed Fund AUTHORISED INVESTMENT ADVISER S REPORT 3 FUND INFORMATION Number of shares in issue/net asset value per share 5 Ongoing charges 5 Synthetic risk and reward indicator 5 Portfolio statement 6 Portfolio transactions 6 INTERIM FINANCIAL STATEMENTS Statement of total return 7 Statement of change in net assets attributable to shareholders 7 Balance sheet 8 Notes to the interim financial statements 8

4 AUTHORISED STATUS AND GENERAL INFORMATION Authorised Status is an investment company with variable capital (ICVC) incorporated under the Open Ended Investment Company (OEIC) Regulations It is a non-ucits retail scheme as defined in the Collective Investment Schemes Sourcebook (COLL) and is an umbrella company for the purposes of the OEIC Regulations. The Company is incorporated in England and Wales with the registration number IC and is authorised and regulated by the Financial Conduct Authority with effect from 30 July The shareholders are not liable for the debts of the Company. A sub-fund is a legal entity; if the assets attributable to any sub-fund were insufficient to meet the liabilities attributable to it, the shortfall will not be met out of the assets attributable to one or more other sub-funds of the ICVC. The Company currently has one sub-fund, the MFM SGWM Managed Fund. Investment Objectives MFM SGWM Managed Fund The investment objective of the Fund is to provide medium to long term capital growth on a medium risk basis. It is intended that this objective will be achieved by the Fund investing primarily in a diversified portfolio of units/shares of collective investment schemes, (including, but not restricted to, Exchange Traded Funds, unregulated funds such as hedge funds, collective investment schemes which themselves invest in property and/or the shares of property companies, and index-linked collective investment schemes), and transferable securities (including, but not restricted to, shares in investment companies including investment trusts which themselves invest in equities, property and/or the shares of property investment companies and equity linked transferable securities and fixed interest securities) on a global basis. The Fund is also permitted to invest in money market instruments, government and public securities, cash and near cash, warrants and deposits as permitted for non- UCITS retail schemes in accordance with COLL. It is intended that the assets of the Fund will be managed so that it is eligible for quotation within the Investment Management Association's Flexible Investment sector. Further details may be found via the IMA s website at The Fund may only invest in derivatives and forward transactions for the purposes of hedging. Change in Prospectus No changes have been made since the last report. Up to date key investor information documents, prospectus and reports and accounts for any fund can be requested by the investor at any time. 1

5 AUTHORISED CORPORATE DIRECTOR S STATEMENT This report has been prepared in accordance with the requirements of the Collective Investment Schemes Sourcebook as issued and amended by the Financial Conduct Authority. ALLAN HAMER JOINT MANAGING DIRECTOR WAYNE D GREEN JOINT MANAGING DIRECTOR MARLBOROUGH FUND MANAGERS LTD 14 January

6 MFM SGWM MANAGED FUND AUTHORISED INVESTMENT ADVISER S REPORT For the six month period ended 30 November 2014 Percentage change and sector position to 30 November 2014 Six months 1 year 3 years 5 years Since Launch** MFM SGWM Managed Fund 3.59% 7.08% 31.59% 45.73% 24.69% Quartile Ranking* * Based on ranking within IMA Flexible Investment Sector **3 September 2007 External Source of Economic Data: Morningstar (mid to mid, net income reinvested) At the beginning of the year a client of mine who is a member of a local investment club asked me for my prediction of where FTSE 100 would be at the end of 2014 an utterly pointless game of course, but I took a stab at At the time of writing it is approximately 6300 so I was only out by a mere 900 points! Since my last report in May we have continued to experience volatility in markets and this should come as no surprise since we live in an age of instant communication and instant reaction, so much so that it s barely worthy of comment, except of course that it does affect ordinary investor sentiment as well as the global players: no-one wants to hear that the markets have tanked. As always, there are bright spots among the apparent doom and gloom and many emerging markets in particular have seen strong performance with India, Thailand Indonesia and Egypt all posting returns in excess of 20% in the year to date. We have exposure to EM through First State and Lazard and our fund has benefited accordingly. And it s not just emerging markets, The US and Japan have both produced returns well in excess of our home market with S&P % over the period and the Japanese Topix 17% (Source: FT. All figures approximate). During the period we have sold the holdings in Artemis Income, Axa Framlington UK Select Opportunities, First State Global Emerging Markets Leaders and Schroder UK Opportunities. We have bought into Lazard Emerging Markets and Rathbone Income. The Fund has recently been awarded an A rating by Citywire for consistent performance at relatively low risk. Distributions (Class A) Year 2014 Year 2013 Year 2012 Year 2011 Net income paid 30 September (inc shares) pps pps pps pps (acc shares) pps pps pps pps Neil Shillito SG Wealth Management Ltd 6 January 2015 This report contains FTSE data. Source: FTSE International Limited ( FTSE ) FTSE FTSE is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. 3

7 MFM SGWM MANAGED FUND AUTHORISED INVESTMENT ADVISER S REPORT (CONTINUED) Portfolio Changes For the six month period ended 30 November 2014 Purchases Cost ( ) Sales Proceeds ( ) Rathbone Income 'I' (Acc) 2,300,000 Schroder UK Opportunities 'X' (Acc) 2,921,214 Lazard Emerging Markets 'I' (Acc) 1,900,000 First State Global Emerging Mkts Ldrs 'B' 2,369,360 Royal London UK Equity Inc 'M' (Acc) 1,850,000 Artemis Income 'I' (Acc) 1,589,481 Liontrust Special Situations 'I' (Inc) 871,829 AXA Framlington UK Select Opps 'ZI' (Acc) 1,555,321 Newton Asian Income Inst (Acc) 290,000 JPM US Equity Income 'C' (Acc) 1,200,000 Schroder Tokyo 'Z' (Acc) 273,000 Jupiter European (Inc) 236,000 First State Asia Pacific Ldrs 'B' (Acc) 215,000 PFS Downing Active Management 'B' (Acc) 190,000 Accumulation Dividends 243,504 First State Asia Pacific Leaders 'B' (Acc) 159,000 Equalisation on Dividends (21,541) Newton Asian Income Inst (Acc) 120,000 Royal London UK Equity Inc 'M' (Acc) 114,000 Schroder Tokyo 'Z' (Acc) 100,000 Liontrust Special Situations 'I' (Inc) 70,000 EEA Life Settlement Sterling Run off Cell 48,243 Total purchases for the period 7,921,792 Total sales for the period 10,672,619 4

8 MFM SGWM MANAGED FUND FUND INFORMATION Number of shares in issue/net asset value per share Net Asset Value Income Accumulation NAV Per Share of Scheme Property Shares in Issue Shares in Issue Income Accum. 31 May 2012 Class A 24,547,352 8,673,810 17,531, p 94.08p 31 May 2013 Class A 23,821,328 6,877,763 13,834, p p 31 May 2014 Class A 21,981,483 4,348,139 13,998, p p 30 November 2014 Class A 20,411,862 3,391,144 13,054, p p Ongoing charges Ongoing charges 31 May % 30 November % The ongoing charge figure is based on expenses for the year. This figure may vary from year to year. It excludes: Performance fees Portfolio transaction costs, except in the case of an entry/exit charge paid by the Fund when buying or selling units in another collective investment scheme. Synthetic risk and reward indicator Lower risk Typically lower rewards Higher risk Typically higher rewards The risk and reward indicator above aims to provide you with an indication of the overall risk and reward profile of the Fund. It is calculated based on the volatility of the Fund using weekly historic returns over the last five years. If five years data is not available for a fund, the returns of a representative portfolio are used. This Fund has been measured as 4 because it has experienced moderate volatility historically. 5

9 MFM SGWM MANAGED FUND Portfolio statement Holding or Bid Percentage of nominal value value total net assets as at 30 Nov 14 % UNITED KINGDOM (46.71%, May %) 832,855 Liontrust Special Situations 'I' (Inc) 2,304, ,563 Matrix Asset Based 2 Closed Ended * ,632 Matrix Asset Based 2 Closed Ended SP * ,083 PFS Downing Active Management 'B' (Acc) 1,563, ,074 Rathbone Income 'I' (Acc) 2,290, ,251,963 Royal London UK Equity Income 'M' (Acc) 3,375, Total United Kingdom 9,534, ASIA PACIFIC (12.99%, May %) 256,920 First State Asia Pacific Leaders 'B' (Acc) 1,331, ,474 Newton Asian Income Inst (Acc) 1,320, Total Asia Pacific 2,652, EUROPE (8.22%, May %) 125,265 Jupiter European (Inc) 1,678, Total Europe 1,678, JAPAN (6.29%, May %) 1,924,840 Schroder Tokyo 'Z' (Acc) 1,283, Total Japan 1,283, NORTH AMERICA (6.82%, May %) 837,871 JPM US Equity Income 'C' (Acc) 1,391, Total North America 1,391, EMERGING MARKETS (9.12%, May %) 653,370 Lazard Emerging Markets 'I' (Acc) 1,860, Total Emerging Markets 1,860, SPECIALIST (8.40%, May %) 11,946 EEA Life Settlement Sterling Run Off Cell ** 1,715, Total Specialist 1,715, Portfolio of investments 20,116, Net current assets 295, Net assets 20,411, All investments are units/shares in ICVCs and unit trusts which are authorised or 'recognised' by the FCA with the exception of * which are listed closed end funds constituting transferable securities and ** which are unregulated ICVCs. Investments in unit trusts and OEICS have been valued using the last available selling/bid prices and other investments have been valued using bid market values ruling on international stock exchanges at 12 noon on 30 November 2014, being the last valuation point of the period. Market value is defined by the SORP as fair value which is generally the bid value of each stock. EEA Life Settlement is being priced by the authorised corporate director based on the latest information from the company. The NAV of Matrix has been reduced to zero by the company. Portfolio transactions for the six months ended 30 November 2014 Total purchases, including transaction charges 7,921,792 Total sales proceeds, net of transaction charges 10,672,619 6

10 MFM SGWM MANAGED FUND INTERIM FINANCIAL STATEMENTS (unaudited) For the six months ended 30 November 2014 Statement of total return 30 November November 2013 Income: Net capital gains/(losses) 555, ,129 Revenue 254, ,561 Expenses (112,152) (127,934) Finance costs: Interest (1,106) (1,554) Net revenue/(expense) before taxation 141,102 30,073 Taxation 0 0 Net revenue/(expense) after taxation 141,102 30,073 Total return before distributions 696, ,202 Finance Costs: Distributions (7,034) (888) Change in net assets attributable to shareholders from investment activities 689, ,314 Statement of change in net assets attributable to shareholders 30 November November 2013 Opening net assets attributable to shareholders * 21,981,483 23,821,328 Amounts receivable on issue of shares 244, ,129 Amounts payable on cancellation of shares (2,504,066) (1,697,107) (2,259,666) (1,144,978) Stamp duty reserve tax 0 (3,266) Renewal commission 923 1,386 Change in net assets attributable to shareholders from investment activities 689, ,314 Closing net assets attributable to shareholders 20,411,862 * 22,844,784 * These figures are not the same as the comparatives are taken from the preceding interim period and not the last final accounts. 7

11 MFM SGWM MANAGED FUND INTERIM FINANCIAL STATEMENTS (unaudited) as at 30 November 2014 Balance sheet 30 November May 2014 Assets: Investment assets 20,116,464 22,311,627 Debtors 46,096 30,071 Cash and bank balances 335, Total other assets 381,308 30,546 Total assets 20,497,772 22,342,173 Liabilities: Investment liabilities 0 0 Creditors (30,951) (315,155) Bank overdrafts (54,959) (37,193) Distribution payable on income shares 0 (8,342) Total other liabilities (85,910) (360,690) Total liabilities (85,910) (360,690) Net assets attributable to shareholders 20,411,862 21,981,483 Notes to the interim financial statements. Accounting policies The interim financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice for Authorised Funds issued by the Investment Management Association in October The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 May 2014 and are described in those annual financial statements. 8

12 Marlborough Fund Managers Limited Marlborough House 59 Chorley New Road Bolton BL1 4QP Customer Support: Intermediary Support: Dealing: Fax: Website: Marlborough Fund Managers Limited Registered in England No Authorised and regulated by the Financial Conduct Authority and a member of IMA